University of Santo Tomas

FACULTY OF CIVIL LAW (1734)

LABOR LAW AND

SOCIAL LEGISLATION
Pre-Week Notes 2023
ACADEMICS COMMITTEE

SECRETARIES-GENERAL: Angela Beatrice S. Peña & Katherine S. Policarpio

EXECUTIVE COMMITTEE FOR CRIMINAL LAW: Herlene Mae D. Calilung
EXECUTIVE COMMITTEE: Ron-Sophia Nicole C. Antonio, Herlene Mae D. Calilung,
Patrisha Louise E. Dumanil, Alexandra Maureen B. Garcia, Hannah Joy C. Ibarra,
Jedidiah R. Padua, Paulinne Stephany G. Santiago

LABOR LAW AND SOCIAL LEGISLATION PRE-WEEK COMMITTEE

SUBJECT HEAD FOR LABOR LAW: Adrianne C. Tamayo

MEMBERS: Namnama Chantal F. Espiritu, Jenilyn B. Toledo, Mary Genelle S.
Cleofas, and Sarah May D. Medalle
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Academics Committee
Faculty of Civil Law
University of Santo Tomas
España, Manila 1008

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University of Santo Tomas, the Catholic University of the Philippines.

2023 Edition.

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Released in the Philippines, 2023.

 LABOR LAW AND SOCIAL LEGISLATION
3. LABOR CODE
I. FUNDAMENTAL PRINCIPLES AND CONCEPTS
Applicability of Labor Code

GR: All rights and benefits granted to workers under the LC

A. LEGAL BASIS shall apply alike to all workers, whether agricultural or non-
agricultural. (Art. 6, LC)

XPNs:
1. 1987 CONSTITUTION 1. Government Ees;
2. Ees of GOCCs created by special or original charter;
Basic Rights of Workers Guaranteed by the Constitution 3. Foreign governments;
4. International agencies;
1. Security of tenure; 5. Corporate officers/intra-corporate disputes which
2. Living wage; fall under P.D. 902-A and now falls under the
3. Share in the fruits of production; jurisdiction of the regular courts pursuant to the
4. Just and humane working conditions; Securities Regulation Code;
5. Self-organization;
6. Collective bargaining; 6. Local water district except where the NLRC’s
7. Collective negotiations; jurisdiction is invoked; and
8. Engage in peaceful concerted activities, including the
right to strike; and 7. As may otherwise be provided by the LC.
9. Participate in policy and decision-making processes.
(Sec. 3, Art. XIII, 1987 Constitution) Test to Determine the Applicability of the LC to GOCCs

Fundamental Management Rights (S-P-I-T) When a GOCC is created by a special charter, it is subject to
the provisions of the Civil Service Law. while those
1. Right to Select Ees; incorporated under the general corporation law are subject
2. Right to Prescribe rules; to the provisions of the LC. (PNOC-EDC v. Leogardo, G.R. No.
3. Right to reasonable return on Investments; and 58494, 05 July 1989)
4. Right to Transfer or discharge Ees.
Labor Dispute between Government Ees
2. CIVIL CODE
It is the Public Sector Labor-Management Council, not the
DOLE, which shall hear the dispute. (Sec. 15, E.O. No. 180,
1. Art. 1700 – The relations between capital and labor are
01 June 1987)
not merely contractual. They are so impressed with
public interest that labor contracts must yield to the
Applicability without Er-Ee Relationship
common good. Therefore, such contracts are subject to
the special laws on labor unions, collective bargaining,
The LC may apply even if the parties are not Ers and Ees of
strikes and lock outs, closed-shop, wages, working
each other. It is not correct to say that employment
conditions, hours of labor, and similar subjects.
relationship is a pre-condition to the applicability of the
Code (e.g., illegal recruitment, misuse of POEA license).
2. Art. 1702 – In case of doubt, all labor legislation and all
(Azucena, 2016)
labor contracts shall be construed in favor of the safety
and decent living for the laborer.
Extraterritorial Application of LC
3. Art. 1708 – The laborer’s wages shall not be subject to
Whether employed locally or overseas, all Filipino workers
execution or attachment, except for debts incurred for
enjoy the protective mantle of Philippine labor and social
food, shelter, clothing, and medical attendance.
legislation, contract stipulations to the contrary
notwithstanding. This is in keeping with the basic public
policy of the State to afford protection to labor, promote
full employment, ensure equal work opportunities
regardless of sex, race, or creed, and regulate the relations
between workers and Ers. For the State assures the basic
rights of all workers to self-organization, collective
bargaining, security of tenure, and just and humane
conditions of work. (PNB v. Cabansag, G.R. No. 157010, 21
June 2005)

1 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
Utmost liberality Rule
B. STATE POLICY TOWARDS LABOR
In case of doubt, the sympathy of the law on social security
is toward its beneficiaries, and the law, by its own terms,
requires a construction of utmost liberatlity in their favor.
1. SECURITY OF TENURE (Rodrin v. Government Service Insurance System, G.R. No.
162837, 28 Jul. 2008))
No worker shall be dismissed except for a just or authorized
cause provided by law and after due process. (Art. 294, LC) 6. BURDEN OF PROOF AND QUANTUM OF EVIDENCE

2. SOCIAL JUSTICE Burden of Proof

Labor Legislation vs. Social Legislation In determining the Ee’s entitlement to monetary claims, the
burden of proof is shifted from the Er or the Ee, depending
LABOR LEGISLATION SOCIAL LEGISLATION on the monetary claim sought. (Minsola v. New City Builders,
Governs effects of Inc., G.R. No. 207613, 31 Jan. 2018)
Directly affects
employment (e.g.
employment (e.g. wages)
compensation for injuries) In an illegal dismissal case, the Ee has the burden of proof
Refers to labor statutes like to first show that he was indeed dismissed from
Refers to Social Security
Labor Relations Law and employment. Before the Er must bear the burden of proving
Laws
Labor Standards Law that the dismissal was legal, the Ee must first establish by
Focuses on the particular substantial evidence the fact of his dismissal from service.
Focuses on the rights of the
part of the society or (Reyes v. Global Beer Below Zero, Inc., G.R. No. 222816, 04 Oct.
worker in the workplace
segment thereof. 2017)

Quantum of Evidence
3. EQUAL WORK OPPORTUNITIES

Q: What is the quantum of evidence required in labor

The State shall afford protection to labor, promote full cases? (2012 BAR)
employment, ensure equal work opportunities regardless
of sex, race or creed and regulate the relations between A: In labor cases, as in other administrative and quasi-
workers and Ers. (Art. 3, LC) judicial proceedings, the quantum of proof necessary is
substantial evidence or such amount of relevant evidence
4. RIGHT TO SELF-ORGANIZATION AND COLLECTIVE which a reasonable mind might accept as adequate to justify
BARGAINING a conclusion. (Valencia v. Classique Vinyl Products Corp., G.R.
No. 206390, 30 Jan. 2017)
The State shall assure the right of workers to self-
organization, collective bargaining, security of tenure, and Equipoise Rule
just and human conditions of work. (Art. 3, LC)
Under the law, where both parties in a labor case have not
The right to form, join, or assist a union is specifically presented substantial evidence to prove their allegations,
protected by the Constitution and such right shall not be evidence will be considered in equipoise. In such a case, the
abridged. Art. 257 of the LC empathically relates to the scales of justice are tilted in favor of labor. (Hubilla et al. v.
policy of the State to promote and emphasize the primacy of HSY Marketing Ltd., Co., et al. G.R. No. 207354, 10 Jan. 2018)
free collective bargaining and negotiations, free trade
unionism, and free and voluntary organization of a strong Limitation to Protection of Labor
and united labor movement. (Chan, 2019)
1. Recognition of management rights - The law also
5. CONSTRUCTION IN FAVOR OF LABOR recognizes that management has rights which are also
entitled to respect and enforcement in the interest of
fair play. (St. Luke’s Medical Center Employees
All doubts in the implementation and interpretation of the
Association-AFW v. NLRC, G.R. No. 162053, 07 Mar.
provisions of the LC, including its IRRs, shall be resolved in
2007)
favor of labor. (Art. 4, LC)
2. Principle of non-oppression - Neither capital nor
NOTE: Relaxed and liberal interpretation of labor
labor shall act oppressively against the other or impair
procedures — mainly for the benefit of employee, and not
the interest or convenience of the public. (Art. 1701,
the employer. (Reyes v. Rural Bank of San Rafael (Bulacan),
NCC)
Inc., G.R. No. 230597, 23 Mar. 2022, J. Hernando)
The protection to labor clause in the Constitution is not
designed to oppress or destroy capital. (Capili v. NLRC, G.R.
No. 117378, 26 Mar. 1997)

U N IV E R S I T Y O F S A N T O T O M A S 2
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 LABOR LAW AND SOCIAL LEGISLATION
ADDITIONAL DEFINITIONS
II. PRE-EMPLOYMENT
Overseas Filipino Worker (OFW) / Migrant Worker

It refers to a Filipino who is to be engaged, is engaged, or

has been engaged in remunerated activity in a country of
A. RECRUITMENT AND PLACEMENT OF LOCAL AND which he or she is not an immigrant, citizen, or permanent
MIGRANT WORKERS resident or is not awaiting naturalization, recognition, or
admission, whether land-based or sea-based regardless of
status; excluding a Filipino engaged under a government-
Governing Laws recognized exchange visitor program for cultural and
educational purposes. For purposes of this provision, a
1. Labor Code; and person engaged in remunerated activity covers a person
2. Migrant Workers and Overseas Filipinos Act of 1995. who has been contracted for overseas employment but has
(R.A. No. 8042, as amended by R.A. No. 10022) yet to leave the Philippines, regardless of status, and
includes “Overseas Contract Workers.” The term “OFW” is
1. DEFINITION OF RECRUITMENT AND PLACEMENT synonymous to “Migrant Worker.” (Sec. 3(f), R.A. No. 11641)

Balik-manggagawa
Recruitment and Placement (C-E-T-C-H-U-P-C-R-A-P)

Recruitment and placement refer to: a) An OFW who is returning to the same employer;

1. Any act of Canvassing, Enlisting, Transporting, b) An OFW who changed employer in the same jobsite
provided he/she can show proof of his/her new
Contracting, Hiring, Utilizing, or Procuring workers;
and employment contract duly verified by POLO;
2. Includes Contract services, Referrals, Advertising, or
Promising for employment, locally or abroad, whether c) Undocumented/Irregular workers like tourists,
dependents, students, businessmen who became
for profit or not.
OFWs and have partially served their duly verified
(Art. 13(b), LC)
employment contracts;
Persons Deemed Engaged in Recruitment and
d) An OFW who will transfer to another
Placement
jobsite/country with the same employer, provided
that the worker shall subsequently have another
Any person or entity which, in any manner, offers or
contract to be verified by the POLO in the receiving
promises for a fee, employment to two or more persons
post. (Sec. 29, DOLE A.O. 168-13)
shall be deemed engaged in recruitment and placement.
(Art. 13(b), LC)
Seafarers
NOTE: Regardless of the number of persons dealt with,
It refers to an OFW who is engaged in employment in any
recruitment and placement are still constituted. The
capacity on board a merchant marine vessel plying
proviso merely lays down a rule of evidence that where a
international waters or other sea-based craft of similar
fee is collected in consideration of a promise or offer of
employment to two (2) or more prospective workers, the category. For purposes of this Act, it shall include fishers
onboard commercial fishing vessels on international waters
individual or entity dealing with them shall be deemed to be
engaged in the act of recruitment and placement. The words or as defined under relevant maritime conventions, cruise
ship personnel, yacht crew, those serving on mobile
“shall be deemed” create that presumption. (People v. Panis,
supra) offshore and drilling units in the high seas, and other
persons similarly situated. (Sec. 3(j), R.A. No. 11641)
Thus, the Code applies to any recruitment or placement,
NOTE: Those employed in non-mobile vessels or fixed
whether for profit or not. The reference in the Code that any
structures, even if the said vessels/structures are located
person who offers employment to “two or more persons” as
offshore or in the middle of the sea, cannot be considered as
being engaged in recruitment and placement does not mean
seafarers under the law. (V People Manpower Phils., Inc. v.
that there must be at least two persons involved as this
Buquid, G.R. No. 222311, 10 Feb. 2021, as penned by J.
reference is merely evidentiary. Any person may be charged
Hernando)
with illegal recruitment if they already charged fees even if
they have not yet obtained employment for the applicant.
(People v. Peredo, G.R. No. 211197, 28 Sept. 2016)

NOTE: For a corporation to validly engage in recruitment,

and local and overseas placement of workers, at least 75%
of its authorized and voting capital stock must be owned
and controlled by Filipino citizens. (Art. 27, LC)

3 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
2. REGULATION OF RECRUITMENT AND PLACEMENT (1) Those provided in (a), (b), and (c) who bear a
ACTIVITIES lesser rank, if endorsed by the POLO or Head of
Mission in the absence of the POLO;

a) REGULATORY AUTHORITIES
(2) Professionals and skilled workers with duly
executed/authenticated contracts containing
(1) PHILIPPINE OVERSEAS EMPLOYMENT
terms and conditions over and above the
ADMINISTRATION
standards set by the POEA. The number of
professional and skilled OFWs hired for the
Jurisdiction of the POEA
first time by the Er shall not exceed five (5). For
the purpose of determining the number,
The POEA shall exercise original and exclusive jurisdiction
workers hired as a group shall be counted as
over:
one; or

1. All administrative pre-employment/ recruitment

(3) Workers hired by a relative/family member
violation cases which are administrative in
who is a permanent resident of the host
character, involving or arising out of violations of
country. (Sec. 124, Rule II, Part III, Revised POEA
Rules and Regulations relating to licensing and
Rules And Regulations Governing the
registration, including refund of fees collected from
Recruitment and Employment of Land-Based
the workers or violation of the conditions for
OFWs of 2016)
issuance of license or authority to recruit workers;
and
NOTE: The obligation to register its personnel with the
POEA belongs to the officers of the agency not its
2. Administrative disciplinary action cases involving
employees. (People v. Chowdury, G.R. No. 129577-80, 15 Feb.
Ers, principals, contracting partners, and OFWs
2000)
processed by the POEA. (Sec. 6, Rule X, Omnibus
Rules and Regulations Implementing R.A. No. 8042,
c) ENTITIES PROHIBITED FROM RECRUITING
as amended by R.A. No. 10022)

Land-based Overseas Workers

(2) REGULATORY AND VISITORIAL POWERS OF THE
DEPARTMENT OF LABOR AND EMPLOYMENT
1. Travel agencies and sales agencies of airline
SECRETARY
companies;

Non-transferability of License
2. Officers or members of the board of any corporation
or members in a partnership engaged in the business
The grant of a license is a governmental act by the DOLE
of a travel agency;
based on personal qualifications, and citizenship and
capitalization requirements. (Arts. 27-28, LC)
3. Corporations and partnerships, when any of its
officers, members of the board or partners, is also an
No license to engage in recruitment and placement shall be
officer, member of the board, or partner of a
used directly or indirectly by any person other than the one
corporation or partnership engaged in the business of
in whose favor it was issued nor may such license be
a travel agency;
transferred, conveyed or assigned to any other person or
entity. (Art. 29, LC)
4. Persons, partnerships, or corporations which have
derogatory records, such as but not limited to those:
b) BAN ON DIRECT HIRING

a. Certified to have derogatory record or

Direct Hiring
information by the NBI or by the Anti-Illegal
Recruitment Branch of the POEA;
It occurs when an Er hires a Filipino worker for overseas
employment without going through the POEA or entities
b. Against whom probable cause or prima facie
authorized by the SOLE.
finding of guilt for illegal recruitment or other
related cases exists;
Ban on Direct Hiring

c. Convicted for illegal recruitment or other

GR: No Er may hire a Filipino worker for overseas
related cases and/or crimes involving moral
employment except through the Boards and entities
turpitude; and
authorized by the SOL (Art. 18, LC)

d. Agencies whose licenses have been previously

XPNs: Direct hiring by: (M-I-H-O)
revoked or cancelled by the POEA for violation
a. Members of the diplomatic corps;
of R.A. No. 8042, as amended by R.A. No. 10022,
b. International organizations;
P.D. 442 as amended, and their IRRs.
c. Heads of state and government officials with the
rank of at least deputy minister; or
d. Other Ers as may be allowed by the SOLE, such as:

U N IV E R S I T Y O F S A N T O T O M A S 4
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 LABOR LAW AND SOCIAL LEGISLATION
5. Any official or Ee of the DOLE, POEA, OWWA, DFA, and (Sec. 3, Rule I, Part II, 2016 Revised POEA Rules and
other government agencies directly involved in the Regulations Governing the Recruitment and Employment
implementation of R.A. 8042 and/or any of his/her of Seafarers)
relatives within the fourth civil degree of
consanguinity or affinity; and d) SUSPENSION OR CANCELLATION OF LICENSE OR
AUTHORITY
6. Persons or partners, officers, and directors of
corporations whose licenses have been previously “License” vs. “Authority”
cancelled or revoked for violation of recruitment laws.
(Sec. 2, Rule I, Part II, POEA Rules and Regulations LICENSE AUTHORITY
Governing the Recruitment and Employment of Land- It means a document
Based Overseas Workers) It means a document issued by DOLE
issued by DOLE authorizing a person or
Sea-based Overseas Workers authorizing a person or association to engage in
entity to operate a private recruitment and
1. Travel agencies and sales agencies of airline companies; employment agency. (Art. placement activities as a
13(d), LC) private recruitment entity.
2. Officers or members of the board of any corporation or (Art. 13(f), LC)
members in a partnership engaged in the business of a
travel agency; NOTE: In other words, “license” is issued to a person,
partnership or corporation operating a private employment
3. The applicant is presently an incorporator, director or agency. Whereas “authority” is issued to the employees,
key officer of at least 5 licensed manning agencies; officers, agents or representatives of said private
employment agency.
4. Corporations and partnerships, when any of its officers,
members of the board or partners, is also an officer, Two Kinds of Illegal Recruiter
member of the board, or partner of a corporation or
partnership engaged in the business of a travel agency; 1) Licensee – performs any of the prohibited practices
enumerated under Sec. 6 of R.A. 8042, as amended
5. Individuals, partners, officers or directors of an by R.A. No. 10022.
insurance company who make, propose or provide an
insurance contract under the compulsory insurance 2) Non-licensee – any person, corporation, or entity:
coverage for agency-hired OFW; a. Which has not been issued a valid license or
authority to engage in recruitment and
6. Sole proprietors, partners or officers and members of placement by the SOLE; or
the board with derogatory records, such as, but not
limited to the following: b. Whose license or authority has been
suspended, revoked, or cancelled by the POEA
a. Those convicted, or against whom probable or the SOLE.
cause or prima facie finding of guilt is
determined by a competent authority, for illegal Jurisdiction
recruitment, or for other related crimes or
offenses committed in the course of, related to, The SOLE and the POEA Administrator are vested with
or resulting from, illegal recruitment, or for power to suspend or cancel any license or authority to
crimes involving moral turpitude; recruit Ees for overseas employment. (Art. 35, LC)

b. Those agencies whose licenses have been e) PROHIBITED PRACTICES (Art. 34, LC)
revoked for violation of R.A. No. 8042, as
amended, P.D. 442 (LC), as amended, and R.A. Illegal recruitment is not limited to performing acts of
No. 9208 (Trafficking in Persons Act of 2003), as recruitment without a license. It may also be perpetrated by
amended, and their IRRs; a non-licensee by committing any of the prohibited acts
provided in Art. 34 of the LC.
c. Those agencies whose licenses have been
cancelled, or those who, pursuant to the Order It shall be unlawful for any individual, entity, licensee, or
of the Administrator, were included in the list of holder of authority:
persons with derogatory record for violation of
recruitment laws and regulations; and (a) Charging or accepting, directly or indirectly, any
amount greater than that specified in the schedule of
7. Any official or Ee of the DOLE, POEA, OWWA, DFA, DOJ, allowable fees prescribed by the SOLE, or to make a
DOH, BI, IC, NLRC, TESDA, CFO, NBI, PNP, Civil Aviation worker pay any amount greater than that actually
Authority of the Philippines (CAAP), international received by him as a loan or advance;
airport authorities, and other government agencies
directly involved in the implementation of R.A. No.
8042, as amended, and/or any of his/her relatives
within the 4th civil degree of consanguinity or affinity.

5 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
(b) Furnishing or publishing any false notice or Any recruitment activities, including the prohibited
information or document in relation to recruitment or practices enumerated under Art. 34 of the Labor Code, to be
employment; undertaken by non-licensed or non-holders of authority,
shall be deemed illegal and punishable. (Art. 38(a), LC)
(c) Giving any false notice, testimony, information or
document or commit any act of misrepresentation for Persons responsible in illegal recruitment
the purpose of securing a license or authority under the
LC; The persons criminally liable for illegal recruitment are the
principals, accomplices and accessories. In case of juridical
(d) Inducing or attempting to induce a worker already persons, the officers having ownership, control,
employed to quit his employment in order to offer him management or direction of their business who are
to another unless the transfer is designed to liberate the responsible for the commission of the offense and the
worker from oppressive terms and conditions of responsible employees/agents thereof shall be liable.
employment;
Prohibited Acts in Recruitment and Placement
(e) Influencing or attempting to influence any person or
entity not to employ any worker who has not applied 1. Overcharging
for employment through his agency; 2. False Notice
3. Misrepresentation to Secure License
(f) Engaging in the recruitment or placement of workers in 4. Inducing Worker to Quit
jobs harmful to public health or morality or to the 5. Inducement Not to Employ
dignity of the Republic of the Philippines; 6. Recruitment for Harmful Jobs
7. Failure to submit reports
(g) Obstructing or attempting to obstruct inspection by the 8. Contract Substitution
SOLE or by his duly authorized representatives; 9. Involvement in Travel Agency
10. Withholding of Documents
(h) Failing to file reports on the status of employment, 11. Failure to Deploy
placement vacancies, remittance of foreign exchange 12. Failure to Reimburse
earnings, separation from jobs, departures and such 13. Non-Filipino Manager –
other matters or information as may be required by the 14. Imposition of Excessive Interest
SOLE; 15. Specifying a Loan Entity
16. Non-Renegotiation of Loan
(i) Substituting or altering employment contracts 17. Specifying a Medical Entity
approved and verified by the DOLE from the time of 18. Specifying a Training Entity
actual signing thereof by the parties up to and including 19. Violation of Suspension
the periods of expiration of the same without the 20. Collection of Insurance Premium
approval of the SOLE;
a) ELEMENTS
(j) Becoming an officer or member of the board of any
corporation engaged in travel agency or to be engaged To prove illegal recruitment, only two elements need to be
directly or indirectly in the management of a travel shown, viz:
agency; and
1. The offender undertakes any of the activities within
(k) Withholding or denying travel documents from the meaning of “recruitment and placement” under
applicant workers before departure for monetary or Art. 13(b) of the LC, or any of the prohibited practices
financial considerations other than those authorized enumerated under Art. 34 of the LC; and
under the LC and its IRRs. (Art. 34, LC)
2. The offender has no valid license or authority required
3. ILLEGAL RECRUITMENT by law to enable him to lawfully engage in recruitment
Labor Code and the Migrant Workers and Overseas and placement of workers. (People v Chua, G.R. No.
Employment Act of 1995 (R.A. No. 8042), as amended by 187052, 13 Sept. 2012)
R.A. No. 10022
b) TYPES

Illegal Recruitment
1. Simple – It is committed where a licensee/non-licensee
or holder/non-holder of authority undertakes either
Any act of canvassing, enlisting, contracting, transporting,
any recruitment activities defined under Art. 13(b), or
utilizing, hiring, or procuring workers and includes
any prohibited practices enumerated under Sec. 6 of
referring, contract services, promising or advertising for
R.A. No. 8042, as amended by R.A. No. 10022.
employment abroad, whether for profit or not, when
undertaken by non-licensee or non-holder of authority.
Prescription of action: 5 years. (Sec. 12, R.A. No. 8042,
(Sec. 6, R.A. No. 8042, as amended by R.A. No. 10022)
as amended by R.A. No. 10022)

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 LABOR LAW AND SOCIAL LEGISLATION
2. Illegal Recruitment as Economic Sabotage – It is hope of obtaining
economic sabotage when complex illegal recruitment is employment abroad.
committed.
a. Syndicated – committed by a syndicate if carried ANTI-TRAFFICKING IN PERSONS
out by a group of three (3) or more persons in
conspiracy or confederation with one another; Illegal Recruitment and Trafficking in Persons constitute
different offenses. The prohibition on double jeopardy does
b. Large Scale or qualified – committed against not apply to an act or series of acts constituting different
three (3) or more persons individually or as a offenses. (Ibid.)
group despite the lack of necessary license from
POEA. (People v. Alzona, G.R. No. 132029, 30 July 4. LIABILITY OF LOCAL RECRUITMENT AGENCY AND
2004) FOREIGN EMPLOYER

Prescription of action: 20 years. (Sec. 12, R.A. No.

Liability of the Local Recruitment Agency
8042, as amended by R.A. No. 10022)

GR: A local recruitment agency shall be jointly and

Non-licensee or non-holder of authority
solidarily liable with its principal or foreign-based
employer for any violation of the recruitment agreement
It means any person, corporation or entity which has not
and violation of contracts of employment. (Sec. 10(a)(2),
been issued a valid license or authority to engage in
Rule V, Book I, IRR)
recruitment and placement by the SOLE, or whose license
or authority has been suspended, revoked or cancelled by
XPN: Where the workers themselves insisted for the
the POEA or the Secretary. There is no need to show that the
recruitment agency to send them back to their foreign
accused represented himself as a licensed recruiter. (People
employer despite their knowledge of its inability to pay
v. Ballesteros, G.R. Nos. 116905-908, 06 Aug. 2002)
their wages, the agency is absolved from liability. (Feagle
Construction Corp. v. Gayda, G.R. No. 82310, 18 June 1990)
Persons Liable

a) SOLIDARY LIABILITY
In case of juridical persons, the officers having ownership,
control, management or direction of their businesses who
Solidary Liability
are responsible for the commission of the offense shall be
criminally liable therefor. Failure to reimburse the
It refers to the liability of the principal/employer and the
expenses incurred by the worker in connection with his
recruitment/manning agency, for any and all claims arising
documentation and processing for purposes of deployment,
out of the implementation of the employment contract
in cases where the deployment does not actually take place
involving Filipino workers for overseas deployment. If the
without the worker’s fault, amounts to illegal recruitment
recruitment/manning agency is a juridical being, the
under Sec. 6(m) of the law. (Sec. 6, R.A. No. 8042)
corporate officers and directors and partners, as the case
may be, shall themselves be jointly and severally liable with
Liability of Employee
the corporation or partnership for the aforesaid claims and
damages.
An employee of a company or corporation engaged in illegal
recruitment may be held liable as principal, together with
Liability of the Private Employment Agency and the
his employer, if it is shown that he or she actively and
Principal or Foreign-based Employer is joint and
consciously participated in illegal recruitment.
solidary
c) ILLEGAL RECRUITMENT vs. ESTAFA
They are jointly and solidarily liable for any violation of the
recruitment agreement and the contracts of employment.
ILLEGAL RECRUITMENT ESTAFA
The solidary liability of the principal and the recruitment
Malum prohibitum Malum in se
agency exists for the whole duration of the employment
It is not required that it be
contract and shall not be affected by any substitution,
shown that the recruiter Accused defrauded
amendment or modification made locally or in a foreign
wrongfully represented another by abuse of
country. (Sec. 10, R.A. No. 8042, as amended)
himself as a licensed confidence or by means of
recruiter. deceit.
b) THEORY OF IMPUTED KNOWLEDGE

NOTE: It is enough that the NOTE: It is essential that

The Theory of Imputed Knowledge teaches that the
victims were deceived as the false statement or
knowledge of the agent is knowledge of the principal,
they relied on the fraudulent representation
employer, not the other way around. There being no
misrepresentation and constitutes the very cause
substantial proof that the previous agent knew of and
scheme that caused them or the only motive which
consented to be bound under the employment contract
to entrust their money in induces the complainant to
extension, it cannot be said to be privy thereto. (Sunace
exchange of what they part with the thing of value.
International Management Services, Inc. v. NLRC, et al., G.R.
later discovered was a vain
No. 161757, 25 Jan. 2006)

7 U N IV E R S I T Y O F S A N T O T O M A S
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5. TERMINATION OF CONTRACT OF MIGRANT 4. Foreign nationals who come to the Philippines to teach,
WORKER present and/or conduct research studies in universities
and colleges as visiting, exchange or adjunct professors
under formal agreements between the universities and
Reliefs such as reinstatement with full backwages or
colleges in the Philippines and foreign universities or
separation pay are not applicable to OFWs because of the
colleges; or between the Philippine government and
contractual nature of their employment. An OFW may
foreign government, provided that the exemption is on
however claim placement fee, salaries he would have
a reciprocal basis;
earned had he not been illegally dismissed, moral and
exemplary damages, and attorney’s fees.
5. Permanent resident foreign nationals and probationary
or temporary resident visa holders under Sec. 13(a-f) of
Entitlement to Salary for the Unexpired Portion
the Philippine Immigration Act of 1940 (C.A. 613) and
Sec. 3 of the Alien Social Integration Act of 1995 (R.A. No.
In case of termination of overseas employment without just,
7919);
valid, or authorized cause as defined by law or contract, the
worker shall be entitled to all his salaries for the entire
6. Refugees and stateless persons recognized by the
unexpired portion of the employment contract regardless of
Department of Justice (DOJ); and
the duration of his employment.

7. All foreign nationals granted exemption by law. (Sec. 2,

DOLE D.O. No. 186-17)
B. EMPLOYMENT OF NON-RESIDENT ALIENS
Persons Excluded from Securing an AEP

Employment Permit of Non-resident Aliens The following are excluded from securing an AEP:

Any alien seeking admission to the Philippines for 1. Members of the governing board with voting rights only
employment purposes and any domestic or foreign and do not intervene in the management of the
employer who desires to engage an alien for employment in corporation or in the day to day operation of the
the Philippines shall obtain an employment permit from enterprise;
DOLE. 2. President and treasurer, who are part-owner of the
company;
An employment permit may be issued to: 3. Those providing consultancy services who do not have
Ers in the Philippines;
1. A non-resident alien; or 4. Intra-corporate transferee who is a manager, executive
2. The applicant employer, after a determination of the or specialist;
non-availability of a person in the Philippines who is 5. Contractual service supplier who is a manager,
competent and able and willing at the time of executive or specialist and an Ee of a foreign service
application to perform the services for which the supplier which has no commercial presence in the
alien is desired. (Art. 40, LC) Philippines; and

Persons Required to Obtain Alien Employment Permit

C. DISCRIMINATORY PRACTICES
GR: All foreign nationals who intend to engage in gainful
employment in the Philippine shall apply for Alien
Employment Permit (AEP). (Sec. 1, DOLE D.O. No. 186-17)
Full Protection Clause
XPNs: The following categories of foreign nationals are
The State shall afford protection to labor, promote full
exempt from securing an employment permit:
employment, insure equal work opportuniites regardless of
sex, race or creed and regulate the relations between
1. All members of the diplomatic service and foreign
workers and Ers. The State shall assure the rights of
government officials accredited by and with reciprocity
workers to self-organization, collective bargaining, security
arrangement with the Philippines;
of tenure, and just and humane conditions of work. (Art. 3,
LC)
2. Officers and staff of international organizations of
which the Philippine government is a member, and
NOTE: Covers intentional and non-intentional
their legitimate spouses desiring to work in the
discrimination.
Philippines;

Discriminatory Practices
3. Owners and representatives of foreign principals
whose companies are accredited by the POEA, who
1. Age; (R.A. No. 10911 or the Anti-Age Discrimination
come to the Philippines for a limited period and solely
in Employment Act)
for the purpose of interviewing Filipino applicants for
2. Gender and/or Marital Status; (R.A. No. 9710 or the
employment abroad;
Magna Carta of Women)

U N IV E R S I T Y O F S A N T O T O M A S 8
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 LABOR LAW AND SOCIAL LEGISLATION
3. Health Condition; (R.A. No. 7277 or the Magna Carta f. Discharging or refusing the admission of such
for Disabled Persons) and woman upon returning to her work for fear that she
4. Solo Parents. (Sec. 7, R.A. No. 8972, as amended by may again be pregnant; and (Art. 135, LC)
R.A. No. 11861)
DISCRIMINATORY PRACTICES UNDER THE MAGNA
1. AGE (R.A. No. 10911 or the Anti-Age Discrimination in CARTA OF WOMEN (R.A. No. 9710)
Employment Act)
Discriminatory Practices under R.A. No. 9710

PROHIBITED FORMS OF DISCRIMINATION

the following are forms of discrimination against women in
FOR AN EMPLOYER
relation to employment:

An Er may set age limitations in employment if:

1. Failure of the State to increase the recruitment and
training of women in government services that
(a) Age is a BFOQ reasonably necessary in the normal
cater to women victims of gender-related offenses;
operation of a particular business or where the
differentiation is based on reasonable factors other
2. Discrimination in the employment in the field of
than age;
military, police, and other similar services;

(b) The intent is to observe the terms of a bona fide

3. Expulsion or non-readmission of women faculty
seniority system that is not intended to evade the
due to pregnancy ouside of marriage; (Sec. 13(c),
purpose of this Act;
R.A. No. 9710)

(c) The intent is to observe the terms of a bona fide Ee

4. Failure to provide a woman Ee a special leave
retirement or a voluntary early retirement plan
benefit of 2 months with full pay based on her gross
consistent with the purpose of this Act: Provided,
monthly compensation following surgery caused
that such retirement or voluntary retirement plan is
by gynecological disorders, provided that said
in accordance with the LC, as amended, and other
woman Ee has rendered continuous aggregate
related laws; or
employment service of at least 6 months for the last
12 months; and (Sec. 18, R.A. No. 9710)
(d) The action is duly certified by the SOLE in accordance
with the purpose of R.A. No 10911; (Sec. 6, Ibid.)
5. Failure of the State to ensure women migrant
worker’s opportunity to undergo skills training
2. GENDER AND/OR MARITAL STATUS (R.A. No. 9710 or before taking a foreign job, gender-sensitive
the Magna Carta of Women) training and seminars, and equal opportunities
based on merit and fitness.
The following are acts of discrimination under the LC:
3. HEALTH CONDITION
a. Payment of a lesser compensation, including wage, R.A. No 7277 or the Magna Carta for Disabled Persons
salary or other form of remuneration and fringe
benefits, to a female Ee as against a male Ee, for
DISCRIMINATORY ACTS DURING
work of equal value; and
PRE-EMPLOYMENT
b. Favoring a male Ee over a female Ee with respect to
1. Limiting, segregating or classifying a disabled job
promotion, training opportunities, study, and
applicant in such a manner that adversely affects
scholarship grants solely on account of their sexes.
his work opportunitites; and
(Ibid.)
2. Screening out disabled persons through
qualification standards, employment tests or other
c. Stipulating as a condition of employment or
selection criteria;
continuation of employment that a woman Ee shall
not get married, or stipulating expressly or tacitly
XPN: Said qualification standards are BFOQ.
that upon getting married, a woman Ee shall be
deemed resigned or separated, or to actually
DISCRIMINATORY ACTS DURING
dismiss, discharge, discriminate, or otherwise
EMPLOYMENT
prejudice a woman Ee merely by reason of her
marriage; (Art. 134, LC)
1. Using standards, criteria, or methods of
administration that either effectively discriminates
d. Denying any woman Ee the benefits provided in the
on the basis of disability, or perpetuate the
Code or to discharge any woman employed by him
discrimination of others who are subject to
for the purpose of preventing her from enjoying
common administrative control;
any of the said benefits;
2. Providing less remuneration or benefits to a
qualified disabled Ee due to his disability, than the
e. Discharging such woman on account of her
amount to which a non-disabled person
pregnancy, or while on leave of in confinement due
performing the same work is entitled;
to her pregnancy; and

9 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
3. Favoring a non-disabled Ee over a qualified (6) Parent left solo or alone with the responsibility of
disabled Ee with respect to promotion, training parenthood due to declaration of nullity or
opportunities, study and scholarship grants, solely annulment of marriage as decreed by a court or by
on account of the latter’s disability; a church as long as he/she is entrusted with the
custody of the children;
4. Re-assigning or transferring a disabled Ee to a job
position he cannot perform by reason of his (7) Parent left solo or alone with the responsibility of
disability; parenthood due to abandonment of spouse for at
least 1 year;
5. Failing to select or administer in the effective
manner employment tests which accurately reflect (8) Unmarried mother/father who has preferred to
the skills, aptitude or other factor of the disabled keep and rear her/his child/children instead of
applicant or Ee that such test purports to measure, having others care for them or give them up to a
rather than the impaired sensory, manual or welfare institution;
speaking skills of such applicant or Ee, if any; and
(9) Any other person who solely provides parental
6. Excluding disabled persons from membership in care and support to a child or children; and
labor unions or similar organizations. (Sec. 32,
Ibid.) (10) Any family member who assumes the
responsibility of head of family as a result of the
DISCRIMINATORY ACTS IN death, abandonment, disappearance or
DISMISSING AN EMPLOYEE prolonged absence of the parents or solo parent.
(Sec. 3, Ibid.)
Dismissing or terminating the services of a disabled Ee by
reason of his disability unless the Er can prove that he
impairs the satisfactory performance of the work involved III. EMPLOYMENT PROPER
to the prejudice of the business entities. Provided, however,
That the Er first sought provide reasonable
accommodations for disabled persons. (Sec. 32(g), Ibid.)

A. MANAGEMENT PREROGATIVE
4. SOLO PARENTS
(Sec. 7, R.A. No. 8972, as amended by R.A. No. 11861)

GR: Management prerogative is the right of the Er to

Solo Parent
regulate all aspects of employment, such as:

any individual who falls under any of the

1. Freedom to prescribe work assignments;
following categories:
2. Working methods;
3. Processes to be followed;
(1) A woman who gives birth as a result of rape and
4. Regulation regarding transfer of Ees;
other crimes against chastity even without a final
5. Supervision of their work, lay-off and discipline; and
conviction of the offender. Provided, that the
6. Dismissal and recall of work. (Goya, Inc. v. Goya, Inc. Ees
mother keeps and raises the child;
Union-FFW, G.R. No. 170054, 21 Jan. 2013)

(2) Parent left solo or alone with the responsibility of

XPN: Otherwise limited by law, contract, and principles of
parenthood due to death of spouse;
fair play and justice.

(3) Parent left solo or alone with the responsibility of

Limitations on Management Prerogative
parenthood while the spouse is detained or is
serving sentence for a criminal conviction for at
The exercise of managerial prerogative is not unlimited. It
least one (1) year;
is circumscribed by limitations found in law, a CBA, or the
general principles of fair play and justice.
(4) Parent left solo or alone with the responsibility of
parenthood due to physical and/or mental
incapacity of spouse as certified by a public medical 1. DISCIPLINE
practitioner;
Components to the Right to Discipline
(5) Parent left solo or alone with the responsibility of
parenthood due to legal separation or de facto 1. Right to discipline;
separation from spouse for at least one (1) year, as 2. Right to dismiss;
long as he/she is entrusted with the custody of the 3. Right to determine who to punish;
children; 4. Right to promulgate rules and regulations;
5. Right to impose penalty (proportionality rule);
6. Right to choose which penalty to impose; and

U N IV E R S I T Y O F S A N T O T O M A S 10
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 LABOR LAW AND SOCIAL LEGISLATION
7. Right to impose heavier penalty than what the Failure to meet the sales quota assigned to each of them
company rules prescribe. (Chan) constitutes a just cause for their dismissal, regardless of the
permanent or probationary status of their employment.
Rule on Proportionality (Leonardo v. NLRC, G.R. Nos. 125303 & 126937, 16 June 2000)

Infractions committed by an employee should merit only 4. BONUS

the corresponding penalty demanded by the circumstance.
The penalty must be commensurate with the act, conduct or
GR: The payment of bonus is a management function, not a
omission imputed to the employee. (Holcim Philippines, Inc.
demandable and enforceable obligation, which cannot be
v. Obra G.R. No. 220998, 08 Aug. 2016.)
enforced upon the Er who may not be obliged to assume the
onerous burden of granting bonuses or other benefits aside
2. TRANSFER OF EMPLOYEES from the Ee’s basic salaries or wages. (Philippine National
Construction Corporation v. NLRC, G.R. No. 128345, 18 May
Forms of Transfer of Employees 1999)
1. Transfer
2. Demotion XPNs: Given for a long period of time, provided that:
3. Promotion
Conditions for a valid exercise by the Employer of its a. Consistent and deliberate – Er continued giving
right to transfer Employees benefit without any condition imposed for its
payment;
The transfer should:
1. Not be unreasonable, inconvenient, or prejudicial b. Er knew he was not required to give benefit;
to the Ee; and c. Nature of benefit is not dependent on profit;
2. Not involve a demotion in rank, diminution in d. Made part of the wage or compensation agreed and
salaries, benefits and other privileges concerning stated in the employment contract;
the transfer. e. It was promised to be given without any conditions
imposed for its payment in which case it is deemed
When transfer is deemed to be constructive dismissal part of the wage; and
f. It has ripened into practice. (Marcos v. NLRC, G.R. No.
A transfer is deemed to be constructive dismissal when 111744, 08 Sept. 1995)
three conditions concur:
5. CHANGE OF WORKING HOURS
(1) when the transfer is unreasonable, inconvenient or
prejudicial to the employee;
Er’s Right to Change Working Hours

(2) when the transfer involves a demotion in rank or

The working hours may be changed, at the discretion of the
diminution of salaries, benefits and other
company, should such change be necessary for its
privileges; and
operations, and that Ees shall observe such rules as have
been laid down by the company. (Interphil Laboratories
(3) when the employer performs a clear act of
Union-FFW v. Interphil Laboratories, Inc., G.R. No. 142824, 19
discrimination, insensibility, or disdain towards
Dec. 2001)
the employee, which forecloses any choice by the
latter except to forego his continued employment.
Types of Flexible Working Arrangements

3. PRODUCTIVITY STANDARD Type Definition

The normal workweek is
The employer has the prerogative to prescribe the reduced to less than 6 days
standards of productivity which may be used as: but the total number of
work-hours is still 48
(1) Incentive scheme - Employees who surpass the Compressed Work Week hours.
productivity standards or quota are usually given (CWW)
additional benefits; and The normal workday is
increased to more than 8
(2) Disciplinary scheme - Employees may be hours but not to exceed 12
sanctioned or dismissed for failure to meet the hours.
productivity standards or quota. (Chan) Normal work days per
week are reduced but
Q: May an employer impose productivity standards for Reduction of Workdays
should not last for more
its workers? than six (6) months.
A: YES. An Er is entitled to impose productivity standards Ees are rotated or
for its workers. In fact, non-compliance may be visited with Rotation of Workers alternately provided work
a penalty even more severe than demotion. The practice of within the workweek.
a company in laying off workers because they failed to make
the work quota has been recognized in this jurisdiction.

11 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
Ees are required to go on 8. POST-EMPLOYMENT RESTRICTIONS
leave for several days or
Forced Leave
weeks utilizing their leave
Types of Restrictive Covenants
credits
Work schedule is not
1. Non-compete clause - When the Ee is prevented
continuous but the work-
Broken-time Schedule from directly competing or working for a
hours within the day or
competitor of his former Er, or when the Ee is
week remain.
prevented from setting up a competing business.
One where the ees agree to
avail the holidays at some 2. Non-solicitation clause - When a duty is imposed
Flexi-holidays other days, provided there on the Ee not to approach his former Er’s
is no diminution of existing customers or prospective customers, or when the
benefits. Ee is prevented from taking customers/clients of
his former Er.
Work from Home (WFH) or Telecommuting Work
Arrangement 3. Non-poaching clause - When the Ee is prevented
from enticing his former Er’s staff away from the
Establishments are highly encouraged to adopt a WFH or business, the aim is to prevent the Ee from taking
telecommuting arrangement when feasible. Ees are key Ees with him to his new employment or
provided with adequate support to perform the assigned business.
task or job. (Sec. 3, Labor Advisory No. 17-B, s. 2020)
Non-Involvement Clause
6. BONA FIDE OCCUPATIONAL QUALIFICATIONS
A non-involvement clause is not necessarily void for being
Bona Fide Occupational Qualification Rule (BFOQ) in restraint of trade if there are reasonable limitations as to
time, trade, and place. It was also stated in this case that the
To justify a BFOQ, the Er must prove two factors: Labor Law validity of a non-involvement clause depends
upon the nature of work of the subject Ee. (Tiu v. Platinum
1. That the employment qualification is reasonably Plans, Phils., Inc., G.R. No. 163512, 28 Feb. 2007)
related to the essential operation of the job involved;
and
B. LABOR STANDARDS
2. That there is a factual basis for believing that all or
substantially all persons meeting the qualification
would be unable to properly perform the duties of the
1. CONDITIONS OF EMPLOYMENT
job. (Star Paper v. Simbol, G.R. No. 164774, 12 Apr.
2006)
a) COVERAGE
No-Spouse Policy or Exogamy Policy
GR: Title I, Book III of the LC deals with hours of work,
An employer's blanket policy of no-spouse employment is weekly rest periods, holidays, service incentive leaves and
discriminatory. Exogamy policy is when two employees of service charges. It covers all Ees in all establishments,
the bank are married through civil or religious rites, one of whether for profit or not. (Art. 82, LC)
them must terminate their employment immediately. To
justify its enforcement, the employer must clearly establish XPNs: (G-F-M-O-M-P-W-D)
a reasonable business necessity. (Dela Cruz-Cagampan v.
|

ONBI, G.R. No. 217414, 22 Jun. 2022). 1. Government Ees;

2. Field personnel;
3. Managerial Ees;
4. Officers and members of the managerial staff;
7. MARRIAGE BETWEEN EMPLOYEES OF COMPETITOR-
5. Members of the family of the Er who are dependent on
EMPLOYERS
him for support;
6. Persons in the personal service of another; and
The prohibition against personal or marital relationships 7. Workers paid by results; (Secs. 1 and 2, Rule I, Book III,
with Ees of competitor companies upon Glaxo’s Ees is IRR)
reasonable under the circumstances because relationships 8. Domestic helpers.
of that nature might compromise the interests of the
company. In laying down the assailed company policy, Glaxo b) HOURS OF WORK
only aims to protect its interests against the possibility that
a competitor company will gain access to its secrets and (1) NORMAL HOURS OF WORK AND HOURS WORKED
procedures. (Duncan v. Glaxo, G.R. No. 162994, 17 Sept. 2004)
GR: The normal hours of work of any Ee shall not exceed
eight (8) hours a day. (Art. 83, LC)

U N IV E R S I T Y O F S A N T O T O M A S 12
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 LABOR LAW AND SOCIAL LEGISLATION
XPNs: 2. The time is not only hours worked on regular
workdays but also during corresponding working
1. Health personnel – include resident physicians, hours on non-working days. Outside of these
nurses, nutritionists, dietitians, pharmacists, social regular working hours, travel away from home is
workers, laboratory technicians, paramedical not considered working time.
technicians, psychologists, midwives, attendants and
all other hospital or clinic personnel. (Art. 83, LC); and XPN: During meal period or when Ee is permitted to sleep
in adequate facilities furnished by the Er.
2. Compressed workweek (CWW) – an alternative
arrangement whereby the normal workweek is SLEEPING TIME
reduced to less than 6 days but the total number of
normal work hours per week shall remain at 48 Sleeping time, when considered and compensable
hours. The normal workday is increased to more than
8 hours without corresponding overtime premium. 1. it is subject to serious interruption; or
(D.O. No. 02-04, s. 2004) 2. takes place under conditions substantially less
desirable than would be likely to exist at the Ee’s
When Hours Worked are Compensable home.
Sleeping time, when NOT compensable
1. Ee is required to be on duty or to be at a prescribed
workplace; Not working time if there is an opportunity for
2. Ee is suffered or permitted to work; comparatively uninterrupted sleep under fairly desirable
3. Rest periods of short duration during working hours conditions. (Azucena, 2010)
which shall not be more than 20 minutes; and
4. Meal periods of less than 20 minutes. (Sec. 7, Rule I, POWER INTERRUPTIONS
Book III, IRR)
Power interruptions NOT exceeding 20 minutes are
NOTE: Travel time, when beneficial to the Er, is compensable
compensable. (Rada v. NLRC, G.R. No. 96078, 09 Jan. 1992)
Brownouts of short duration but not exceeding 20 minutes
WAITING TIME shall be treated as worked or compensable hours whether
used productively by the Ees or not; (DOLE P.I. 36-78)
It shall be considered as working time if:
Power interruptions exceeding 20 minutes may not be
1. Waiting is an integral part of this work; compensable
2. The Ee is required or engaged by the Er to wait; or
3. When Ee is required to remain on call in the Er’s Brownouts running for more than 20 minutes may not be
premises or so close thereto that he cannot use the treated as hours worked provided that any of the following
time effectively and gainfully for his own purpose. conditions are present:
(Sec. 5, Rule I, Book III, IRR, LC)
1. The Ees can leave their workplace or go elsewhere
TRAVEL TIME whether within or without the work premises; or

Travel from home to work 2. The Ees can use the time effectively for their own
interest. (Durabuilt Recapping Plant v. NLRC, G.R.
GR: Normal travel from home to work is not working time. No. 76746, 27 July 1987)

XPNs: LECTURES, MEETINGS, TRAINING-PROGRAMS, and

SIMILAR ACTIVITIES
1. Emergency call outside his regular working hours
where he is required to travel to his regular place ATTENDANCE IN
of business or some other work site; LABOR RELATIONS-ACTIVITIES
2. Done through a conveyance provided by the Er; SEMESTRAL BREAK OF TEACHERS
3. Done under the supervision and control of the Er;
and HEALTH PERSONNEL
4. Done under vexing and dangerous circumstance.
SEAMEN or SEAFARERS
Travel away from home
Work Hours of Seaman
GR:
1. Travel that requires an overnight stay on the part The correct criterion in determining whether or not sailors
of the Ee when it cuts across the Ees workday is are entitled to overtime pay is not, therefore, whether they
clearly working time. were on board and cannot leave ship beyond the regular 8
working hours a day, but whether they actually rendered
service in excess of said number of hours. (Luzon

13 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
Stevedoring Co. v. Luzon Marine Department Union, G.R. No. Alternative Work Arrangements
L-9265, 29 Apr. 1975)
D.A. 17-B-20, s. 2020 was issued in order to to assist Ers to
MAXIMUM HOURS OF WORK resume their business operations while preserving the
employment of their workers under the enhanced
Certain workers may not be required to work beyond a community quarantine, general community quarantine or
certain number of work hours a day. other quarantine arrangements.

1. Public Utility Bus drivers and conductors – 12 hours (3) MEAL PERIODS
per 24-hour period. (D.O. 118- 12, s. 2012)
Every Er shall give his Ees not less than 60 minutes or one
2. Movie and television industry worker/ talent – shall (1) hour time-off for regular meals. (Art. 85, LC)
not exceed eight (8) hours in a day.
Compensable Meal Period
If required to work beyond 8 hours – the maximum
actual hours of work shall not exceed 12 hours in any It is compensable where the lunch period or meal time:
24-hour period;
1. Is predominantly spent for the Er’s benefit; or
If aged 60 years old and above – shall not exceed 8 2. When it is less than 60 minutes.
hours per day;
(4) NIGHT-SHIFT DIFFERENTIAL
NOTE: The hours of work of children in the industry
must be in accordance with R.A. No. 9231 and its IRR. Night-Shift Differential (NSD)
(D.O. 65-04, s. 2004)
Every Ee shall be paid a night shift differential of not less
3. Seafarers onboard ships engaged in domestic than 10% of his regular wage for each hour of work
shipping – 14 hours per 24-hour period or 77 hours per performed between 10:00 PM and 6:00 AM. (Art. 86, LC)
seven (7) days. (D.O. 129-13, s. 2013)
GR: All Ees are entitled to NSD.
(2) COMPRESSED WORK WEEK
XPNs: (Go-Re-Do-Ma-Fi)
Compressed Work Week (CWW)
It is a scheme where the normal workweek is reduced to 1. Those of the Government and any of its political
less than six (6) days but the total number of 48 work hours subdivisions, including GOCCs;
per week shall remain. 2. Those of Retail and service establishments regularly
employing not more than 5 workers;
The normal workday is increased to more than eight hours, 3. Domestic helpers and persons in the personal service
but not to exceed 12 hours, without corresponding of another;
overtime premium. The concept can be adjusted 4. Managerial Ees as defined in Book Three of the Labor
accordingly depending on the normal workweek of the Code; and
company. (D.A. No. 02-04, s. 2004)
5. Field personnel and other Ees whose time and
Requisites: performance are unsupervised by the Er, including
those who are engaged on task or contract basis,
1. The scheme is expressly and voluntarily supported by purely commission basis, or those who are paid a
majority of the Ees; fixed amount for performing work irrespective of the
2. In firms using substances, or operating in conditions time consumed in the performance thereof. (Sec 1,
that are hazardous to health, a certification is needed Rule II, Book III, IRR, LC)
from an accredited safety organization or the firm’s
safety committee that work beyond 8 hours is within NOTE: Where the night-time work of an Ee overlaps with
the limit or levels of exposure set by DOLE’s overtime work, the receipt of overtime pay does not
occupational safety and health standards; and preclude the receipt of night differential pay. The latter is
3. The DOLE Regional Office is duly notified. (Ibid.) night pay, while the former is payment beyond eight-hour
work. (Poquiz, 2012)
Flexible Work Arrangements (FWAs)
(5) OVERTIME WORK
These are alternative schedules or arrangements other than
the standard and traditional workweeks. It is the service rendered in excess of and in addition to 8
hours on ordinary working days. (Caltex Regular Employees
Flexible Work Arrangements are recommended over the at Manila Office v. Caltex Philippines, G.R. No. 111359, 15 Aug.
outright closure of the business or the termination of the 1995)
services of its Ees. (D.A. 002-09, s. 2009)

U N IV E R S I T Y O F S A N T O T O M A S 14
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 LABOR LAW AND SOCIAL LEGISLATION
Overtime Pay Emergency Overtime Work

It is the additional compensation of at least 25% on the GR: The Ee may not be compelled to work more than 8
regular wage for the service or work rendered or performed hours a day.
in excess of 8 hours a day by Ees or laborers in employment
covered by the 8-hour Labor Law. (Art. 87, LC) XPN: Compulsory Overtime. (Wa-D-U-P-Fa-C)

Overtime Pay vs. Premium Pay 1. When the country is at War or when any other
national or local emergency has been declared by
OVERTIME PAY PREMIUM PAY Congress or the Chief Executive;
Additional compensation
for work performed within 2. When overtime work is necessary to prevent loss of
8 hours on days when life or property, or in case of imminent Danger to
Additional compensation normally he should not be public safety due to actual or impending emergency in
for work performed working (on non-working the locality caused by serious accident, fire, floods,
beyond 8 hours on days, such as rest days and typhoons, earthquake, epidemic or other disaster or
ordinary days (within the special days). But calamities;
worker’s 24-hour additional compensation
workday). for work rendered in 2. When there is Urgent work to be performed on
excess of 8 hours during machines, installations, or equipment, in order to
these days is also avoid serious loss or damage to the Er or some other
considered OT pay. causes of similar nature;
He shall be paid an
additional compensation 3. When the work is necessary to prevent loss or damage
of at least 30% of his to Perishable goods;
regular wage.
4. When overtime work is necessary to avail of Favorable
He shall be entitled to weather or environmental conditions where
additional compensation performance or quality of work is dependent thereon;
for work performed on He shall be paid an or
Sunday only when it is additional compensation
established as a rest day. for the overtime work in 5. When the Completion or continuation of work started
the amount equivalent to before the 8th hour is necessary to prevent serious
When the nature of the his regular wage plus at obstruction or prejudice to the business or operations
work has no regular work least 25%. (Art. 87, LC) of the Er.
days and no regular rest
days, he shall be paid an Prohibition Against Offsetting
additional compensation
of at least 30% of his Where a worker incurs undertime hours during his regular
regular wage for work daily work, said undertime hours should not be offset
performed on Sundays and against the overtime hours on the same day or on any other
holidays. (Art 93, LC) day. (Art. 88, LC)

Overtime Pay Rates c) REST PERIODS

OVERTIME PAY RATES Right to Weekly Rest Day (WRD)

During a
Additional compensation of 25% of Every Er shall give his Ees a rest period of not less than
regular working
the regular wage twenty-four (24) consecutive hours after every six (6)
day
Rate of the first 8 hours worked on consecutive normal workdays. (Sec. 3, Rule III, Book III, IRR,
plus at least 30% of the regular wage LC)
(RW):
Emergency Rest Day Work
A. If done on a special holiday OR
rest day: GR: The Ee cannot be compelled by the Er to work on his
During a rest day.
30% of 130% of RW
holiday or rest
day XPNs:
B. If done on a special holiday
AND rest day:
30% of 150% of RW 1. In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake,
C. If done on a regular holiday: epidemic, or other disaster or calamity to prevent loss
30% of 200% of RW of life and property, or imminent danger to public
safety;

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 PRE-WEEK NOTES 2023
2. In cases of urgent work to be performed on the Other holidays declared by law and ordinance
machinery, equipment, or installation to avoid serious
loss which the Er would otherwise suffer; e) SERVICE CHARGE (Art. 96 of the LC, as amended by
R.A. No. 11360)
3. In the event of abnormal pressure of work due to
special circumstances, where the Er cannot ordinarily Covered Ees
be expected to resort to other measures;
GR: All Ees are covered, regardless of their position,
4. To prevent loss or damage to perishable goods; designation, and employment status, irrespective of the
method by which their wages are paid.
NOTE: Instead of ordinary loss, it must be serious.
There must be loss and not just damage. NOTE: Applies only to hotels, restaurants, and similar
establishment collecting service charges.
5. Where the nature of the work requires continuous
operations and the stoppage of work may result in XPN: Managerial Ees (Sec. 2, Rule VI, Book III, IRR, LC)
irreparable injury or loss to the Er; and
Distribution
6. Under other circumstances analogous or similar to the
foregoing as determined by the SOLE. (Art. 92, LC) Previously, all service charges collected by covered Ers are
required to be distributed at the rate of 85% for all covered
d) HOLIDAYS Ees and 15% for management.

Regular Holidays (RHs) R.A. No. 11360 amended Art. 96 of the LC wherein the former
provides that all service charges collected by hotels,
GR: They are compensable whether worked or unworked restaurants and similar establishments shall be distributed
subject to certain conditions. They are also called “legal completely and equally among the covered workers except
holidays.” managerial Ees.

XPN: A legal holiday falling on a Sunday creates no legal

Service Charge vs. Tips
obligation for the Er to pay extra, aside from the usual
holiday pay, to its monthly-paid Ees. (Wellington Investment
SERVICE CHARGE TIPS
and Manufacturing Corp. v. Trajano et al., G.R. No. 114698, 03
July 1995) Collected by the Voluntary payments made
management from the by the customers to the Ees
Regular Holidays and Special Holidays customers. for excellent service.

HOLIDAY DATE
f) OCCUPATIONAL SAFETY AND HEALTH STANDARDS
REGULAR HOLIDAYS LAW (R.A. No. 11058)
(E.O. No. 292, as amended by R.A. No. 9849)
New Year’s Day January 1 Coverage
Araw ng Kagitingan Monday nearest April 9
Maundy Thursday Movable date GR: This Act shall apply to all establishments, projects, sites,
including Philippine Economic Zone Authority (PEZA)
Good Friday Movable date
establishments, and all other places where work is being
Labor Day Monday nearest May 1 undertaken in all branches of economic activity
Independence Day June 12
XPN: Public sector. (Sec. 2, R.A. No. 11058)
National Heroes Day Last Monday of August
Eid’l Fitr Movable date (1) COVERED WORKPLACES (Sec. 3(c))
Eid’l Adha Movable date
Covered workplaces refer to establishments, projects, sites
Bonifacio Day Monday nearest November 30
and all other places where work is being undertaken
Christmas Day December 25 wherein the number of Ee, nature of operations, and risk or
Rizal Day Monday nearest December 30 hazard involved in the business, as determined by the SOLE,
require compliance with the provisions of this Act. (Sec.
SPECIAL (NON-WORKING) HOLIDAYS
3(c), Ibid.)
(E.O. No. 292, as amended by R.A. No. 9849, as further
amended by R.A. No. 10966)
(2) DUTIES OF EMPLOYERS, WORKERS, AND OTHER
Ninoy Aquino Day Monday nearest August 21
PERSONS (Sec. 4)
All Saints Day November 1
Feast of Immaculate (3) WORKERS’ RIGHT TO KNOW (Sec. 5)
December 8
Conception of Mary
Last day of the year December 31

U N IV E R S I T Y O F S A N T O T O M A S 16
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 LABOR LAW AND SOCIAL LEGISLATION
(4) WORKERS’ RIGHT TO REFUSE UNSAFE WORK (Sec. b) PRINCIPLES
6)
(1) NO WORK, NO PAY
(5) WORKERS’ RIGHT TO PERSONAL PROTECTIVE
EQUIPMENT (PPE) (Sec. 8) “No Work, No Pay” Principle (Fair Day’s Wage for a
Fair Day’s Labor)
2. WAGES
GR: If there is no work performed by the Ee, without the
fault of the Er, there can be no wage or pay. Burden of
a) DEFINITIONS
economic loss suffered by Ee shall not be shifted to the Er.

“Wage” is the remuneration or earnings, however

XPNs: When the laborer was able, willing and ready to work
designated, capable of being expressed in terms of money,
but was:
whether fixed or ascertained on a time, task, piece, or
commission basis, or other method of calculating the same,
1. Prevented by management;
payable by an Er to an Ee under a written or unwritten
2. Illegally locked out;
contract of employment.
3. Illegally suspended;
4. Illegally dismissed; and
NOTE: The term “wages” also covers all benefits of the Ee
5. Illegally prevented from working. (Aklan Electric
under the CBA such as severance pay, educational
Coop. v. NLRC, G.R. No. 129246, 10 Jan. 2000)
allowance, accrued vacation leave earned but not enjoyed,
as well as workmen's compensation awards and unpaid
(2) EQUAL PAY FOR EQUAL WORK
salaries for services rendered. (PNB v. Cruz, G.R. No. 80593,
18 Dec. 1989)
(3) FAIR WAGE FOR FAIR WORK

(1) WAGE vs. SALARY

(4) NON-DIMINUTION OF BENEFITS

WAGE SALARY
GR: Nothing in the LC shall be construed to eliminate or in
Applies to the
any way diminish supplements, or other Ee benefits being
compensation for manual Denotes a higher degree of
enjoyed at the time of the promulgation of the Code. (Art.
labor, skilled, or unskilled, employment or a superior
100, LC)
paid at stated times, and grade of services and
measured by the day, implies a position of office.
Benefits being given to Ees cannot be taken back or reduced
week, month, or season.
unilaterally by the Er because the benefit has become part
Indicates considerable pay Suggestive of a larger and
of the employment contract, whether written or unwritten.
for a lower and less more important service.
responsible character of (Gaa v. CA, G.R. No. L-44169,
XPNs:
employment. 03 Dec. 1985)
NOTE: In many situations, however, the words "wages" and
1. Correction of error;
"salary" are synonymous. (Azucena, 2021)
2. Contingent benefit or conditional bonus;
3. Wage order compliance;
“Wage” Includes Sales Commissions
4. Benefits on reimbursement basis;
5. Reclassification of position;
In as much as the words “wage,” “pay,” and “salary” have the
6. Negotiated benefits; and
same meaning, and commission is included in the definition
of “wage,” the logical conclusion is, in the computation of the NOTE: Benefits initiated through negotiation between
separation pay, the salary base should also include the
Er and Ees, such as those contained in a CBA are not
earned sales commissions. (Songco et al. v. NLRC, G.R. Nos. within the prohibition of Art. 100 because, as products
50999-51000, 23 Mar. 1990) of bilateral contract, they can only be eliminated or
diminished bilaterally. (Azucena, 2016)
(2) FACILITIES vs. SUPPLEMENTS
7. Productivity incentives
FACILITIES SUPPLEMENT
As to their Nature NOTE: If the error is not corrected in a reasonable
Extra remuneration or time, it ripens into a company policy and Ees can
Items of expense
benefits demand it as a matter of right.
As to their Inclusion to Wage
Forms part of the wage Independent of wage There is diminution of benefits "when the following
As to their Deductibility requisites are present
Deductible from the wage Not wage deductible
To whose Benefit 1. The grant or benefit is founded on a policy or has
For the benefit of the Granted for the ripened into a practice over a long period of time;
worker and his family convenience of the Er 2. the practice is consistent and deliberate;

17 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
3. the practice is not due to error in the construction any store services of such Er or any other person. (Art. 112,
or application of a doubtful or difficult question of LC)
law; and
4. the diminution or discontinuance is done WAGE DEDUCTION
unilaterally by the employer." (Nippon Paint
Philippines, Inc. v. NIPPEA, G.R. No. 229396) GR: No Er, in his own behalf or on behalf of any person, shall
make any deduction from the wages of his Ees. (Art. 113, LC)
c) PAYMENT OF WAGES
XPNs:
Forms of Payment
a. Where the worker is insured with his consent by the
GR: As a general rule, wages shall be paid in legal tender. Er; and
(Sec. 1, Rule VIII, Book III, IRR of LC)
b. For union dues, in cases where the right of the worker
No Er shall pay the wages of an Ee by means of: or his union to check off has been recognized by the Er
or authorized in writing by the individual worker
1. Promissory notes; concerned. (Art. 113, LC)
2. Vouchers;
3. Coupons; NOTE: Art. 241(o) of the LC provides that special
4. Tokens; assessments may be validly checked-off if there is an
5. Tickets; individual written authorization duly signed by every
6. Chits; or Ee.
7. Any object other than legal tender.
c. In cases where the Er is authorized by law or
NOTE: This prohibition applies even when expressly regulations issued by the SOLE:
requested by the Ee.
i. Deductions for value of meals and facilities freely
XPNs: Payment of wages by check or money order shall be agreed upon; (Azucena, 2016)
allowed if:
ii. In case where the Ee is indebted to the Er where
1. It is customary on the date of the effectivity of the such indebtedness has become due and
Code; demandable; (Art. 1706)
2. Necessary because of special circumstances as
specified in the regulation issued by the SOLE; iii. In court awards, wages may be subject of
3. Stipulated in the CBA; (Art. 102, LC) or execution or attachment, but only for debts
4. Where the following conditions are met: incurred for food, shelter, clothing, and medical
a. There is a bank or other facility for encashment attendance; (Art. 1703)
within a radius of 1 kilometer from the iv. Taxes withheld pursuant to the Tax Code;
workplace;
v. Salary deduction of a member of a legally
b. The Er or any of his agents or representatives established cooperative; (Sec. 59, R.A. No. 6938)
does not receive any pecuniary benefit directly
or indirectly from the arrangement; vi. Deductions for SSS, PhilHealth and Pag-IBIG
premiums;
c. The Ees are given reasonable time during
banking hours to withdraw their wages from vii. Deductions for loss or damage; (Art. 114, LC)
the bank which time shall be considered as
compensable hours worked if done during viii. Deductions made with the written authorization
working hours; and of the Ee for payment to a third person; (Sec. 13,
Rule VIII, Book III, IRR of LC)
d. The payment by check is with the written
consent of the Ees concerned if there is no ix. Deductions as disciplinary measures for habitual
collective agreement authorizing the payment tardiness; (Opinion dated 10 Mar. 1975 of the
of wages by bank checks. (Sec. 2, Rule VIII, Book SOLE)
III, IRR of LC)
x. Agency fees. (Art. 259(e), LC)
d) PROHIBITIONS REGARDING WAGES
Check-off
NON-INTERFERENCE IN DISPOSAL OF WAGES
It is a system by which union dues and other assessments
Er shall not limit or interfere with the freedom of any Ee to are deducted from the Ee's wage by the Er upon
dispose of his wages. He shall not force, compel or oblige his authorization from the worker or by mandate of the law.
Ees to purchase merchandise, commodities or other (Poquiz, 2012)
property from any other person, or otherwise make use of

U N IV E R S I T Y O F S A N T O T O M A S 18
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 LABOR LAW AND SOCIAL LEGISLATION
PROHIBITION AGAINST DEPOSIT REQUIREMENT ORGANIZED UNORGANIZED
ESTABLISHMENT ESTABLISHMENT
GR: While deductions from the Ees’ wages may be made for (with union) (without union)
cash bonds or deposits, the Er, however, is not allowed to The Er and the union shall The Er and the workers
unilaterally impose upon its Ees the giving of cash bonds or negotiate to correct shall endeavor to correct
deposits. distortion. the distortion.
Any dispute shall be
XPN: If the Er proved and established that it falls under any resolved through a Any dispute shall be settled
of the following: grievance procedure under through the NCMB.
the CBA.
a. That it is engaged in such trades, occupations or If it remains unresolved, it If it remains unresolved
business were the practice of making deductions or shall be dealt with through within 10 days it shall be
requiring deposits is a recognized one; or voluntary arbitration. referred to the NLRC.
The dispute will be The NLRC shall conduct
b. That the cash bond or deposit is necessary or resolved within 10 days continuous hearings and
desirable as determined by the DOLE Secretary in from the time the dispute decide the dispute within
appropriate rules and regulations. was referred to voluntary 20 days from the time the
arbitration. same was referred.
e) WAGE DISTORTION
f) MINIMUM WAGE LAW
(1) CONCEPT
Minimum Wage Non-Negotiable and Non- Waivable
Wage distortion is a situation where an increase in
prescribed wage results in the elimination or severe The minimum wage fixed by law is mandatory, thus, it is
contraction of intentional quantitative differences in wage non-waivable and non-negotiable. The enactment is
or salary rates between and among Ee groups in an compulsory in nature to ensure decent living conditions.
establishment as to effectively obliterate the distinctions (PAM Co. v. PAMEA-FFW, G.R. No. L-35254, 29 Jan. 1973)
embodied in such wage structure based on skills, length of
service or other logical bases of differentiation. (Art. 124, XPNs to the Coverage of Minimum Wage
LC)
1. Household or domestic helpers, including family
Elements of Wage Distortion drivers and persons in the personal service of another;

1. An existing hierarchy of positions with corresponding NOTE: Household or domestic workers are only
salary rates; exempt from the minimum wage prescribed by wage
2. A significant change or increase in the salary rate of a orders. R.A. No. 10361, otherwise known as “Batas
lower pay class without a corresponding increase in Kasambahay,” which prescribes the minimum wage
the salary rate of a higher one; for household or domestic helpers.
3. The elimination of the distinction between the 2
groups or classes; and 2. Homeworkers engaged in needle-work;
4. The wage distortion exists in the same region of the
country. (Alliance Trade Unions v. NLRC, G.R. No. 3. Workers employed in any establishment duly
140689, 17 Feb. 2004) registered with the National Cottage Industries and
Development Authority provided that such workers
Two (2) methods of adjusting minimum wage perform the work in their respective homes;

The following are the methods of adjusting the minimum 4. Workers in any duly registered cooperative when so
wage: recommended by the Bureau of Cooperative
Development and upon approval of the SOLE. (Sec. 3,
1. floor wage method – involves the fixing of a Rule VII, Book III, IRR);
determinate amount to be added to the prevailing
statutory minimum wage rates. On the other hand, 5. Ees of retail and service establishments regularly
employing not more than 10 Ees; (Sec. 4, R.A. No. 6727)
2. salary-ceiling method – the wage adjustment was
to be applied to employees receiving a certain 6. Workers in a duly registered cooperative when so
denominated salary ceiling. In other words, recommended by the Bureau of Cooperative
workers already being paid more than the existing Development and upon approval of the SOLE; (Sec. 2,
minimum wage (up to a certain amount stated in Rule VII, Book III, IRR)
the Wage Order) are also to be given a wage 7. Workers of a BMBE.
increase. (Norkis Free and Ind. Workers Union v.
Norkis Trading Co., Inc., G.R. No. 157098, 30 June, Additional Exemptions
2005)
The NWPC Guidelines on Exemption from wage orders adds
categories of exemptible enterprises such as

19 U N IV E R S I T Y O F S A N T O T O M A S
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1. distressed establishments, Formula to Compute Wage on Holidays
2. new business enterprises, and
3. establishments adversely affected by natural Regular Holiday
calamities. Unworked
100%
Wage Orders issued by the wage boards under Arts. 99 and Regular Worked
122 may provide for other exemptions from the Minimum Workday First 8 hrs Excess of 8 hrs
Wage Law. (Azucena, 2016) plus 30% of hourly
200%
rate on said day
g) HOLIDAY PAY
Unworked
100%
Holiday Pay is a one-day pay given by law to an Ee even if
Worked
he does not work on a regular holiday. (Azucena, 2016) Rest Day
First 8 hrs First 8 hrs
plus 30% of hourly
Persons entitled to Holiday Pay plus 30% of 200%
rate on said day
GR: All Ees are entitled. (Sec. 1, Rule IV, Book III, IRR)
SPECIAL HOLIDAY
XPNs: Unworked
1. Government Ees and any of its political subdivisions, GR: No Pay.
including GOCCs (with original charter);
2. Retail and service establishments regularly XPN: favorable
employing less than 10 workers; 1. company policy
3. Domestic helpers and persons in the personal service 2. practice
of another; Regular 3. CBA
4. Ee engaged on task or contract basis or purely Workday
commission basis; granting payment of wages on special
5. Members of the family of the Er who are dependent days even if unworked
on him for support; Worked
6. Managerial Ees and other members of the managerial First 8 hrs Excess of 8 hrs
staff; plus 30% of daily plus 30% of hourly
7. Field personnel and other Ees whose time and wage rate of 100% rate on said day
performance are unsupervised by the Er; and Unworked
8. Ees paid Fixed amount for performing work None
irrespective of the time consumed in the Worked
performance thereof. (Ibid.) Rest Day
First 8 hrs First 8 hrs
plus 50% of the plus 30% of hourly
Exemption of Retail or Service Establishments daily rate of 100% rate on said day

MINIMUM WAGE HOLIDAY PAY/SIL

For those declared as special working holidays, the
Applies to establishments
Applies to establishments following rules shall apply:
employing not more than
employing less than 10 Ees.
10 Ees.
a. For work performed, an Ee is entitled only to his
Granted by the LC. May be
Has to be obtained by basic rate.
availed of without the need
applying for it with the
of a prior application for
Regional Wage Board. b. No premium pay is required since work
exemption. performed on said days is considered work on
ordinary working days.
Regular Holiday vs. Special Holiday
Double Holiday Pay
REGULAR HOLIDAY SPECIAL HOLIDAY
If unworked If two regular holidays fall on the same day (such as Maundy
Compensable, subject to Thursday or Good Friday falling on Araw ng Kagitingan), the
Not compensable
certain conditions Ees should be paid 400% of the basic wage for both
If worked holidays, provided he worked on that day or was on leave of
Rate is 200% of the regular Additional 30% premium absence with pay or was on authorized absence on the day
rate pay of 100% RW prior to the regular holiday.
Not exclusive; law or
Limited to the 12 holidays
ordinance may provide for
provided in the LC.
other special holidays.

U N IV E R S I T Y O F S A N T O T O M A S 20
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 LABOR LAW AND SOCIAL LEGISLATION
When two RHs fall on the same day, the following rates It does not include all allowances and monetary benefits
apply: which are not considered or integrated as part of the
regular or basic salary such as:

1. Cash equivalent of unused vacation and sick leave

credits;
2. Overtime pay;
3. Premium pay;
4. Night Shift Differential;
5. Holiday pay; and
6. Commissions

Concept of Successive Regular Holidays XPN: If it is an integral part of the basic salary. (Philippine
Duplicators, Inc. v. NLRC, G.R. No. 110068, 15 Feb. 1995)

Minimum Period of Service Required

It is imposed as a “minimum service requirement” that the

Ee should have worked for at least one (1) month during a
calendar year. (No. X(A), DOLE Handbook on Workers
Statutory Monetary Benefits)

Persons Covered by PD 851

Conditions for an Ee to be Entitled to Two Successive
Holiday Pays 1. Ees

On the day immediately preceding the first RH, he must be: GR: All rank-and-file Ees are covered by PD 851 regardless
1. Present (worked); or, of the amount of basic salary that they receive in a month,
2. On leave of absence (LOA) with pay. (Sec. 10, Rule IV, if their Ers are not otherwise exempted from paying the
Book III, IRR) 13th month pay. Such Ees are entitled to the 13th month
pay regardless of said designation of employment status,
If the above stated conditions are not met and irrespective of the method by which their wages are
paid.
He must work on the first RH to be entitled to holiday pay
on the second RH. (ibid.) Provided, that they have worked for at least one month,
during a calendar year. (Revised Guidelines on the
h) 13TH MONTH PAY Implementation of the 13th Month Pay Law)

13th Month Pay or its Equivalent XPNs:

a. Government Ees;
It is a form of monetary benefit equivalent to the monthly b. Ees paid purely on commission basis;
basic compensation received by an Ee, computed pro-rata c. Ees already receiving 13th month pay;
according to the number of months within a year that the Ee d. Managers; and
has rendered service to the Er. (DOLE’s BWC issues Q & A on e. Seafarers.
13th month pay)
Formula and Computation of 13th Month Pay NOTE: Managerial Ees may receive 13th month pay if they
are granted under an employment contract or a company
policy or practice. (Chan, 2019)

2. Ers

Where: GR: All Ers are covered by PD 581.

XPNs:
NOTE: The minimum wage in NCR is Php 570.00. (Wage
Order No. NCR-23) a. The Government and any of its political
subdivisions, including GOCCs;
Basic Salary
XPN to this XPN: Corporations operating
Includes all remunerations or earnings paid by the Er to an essentially as private subsidiaries of the
Ee for services rendered including cost-of-living Government.
allowances.
b. Ers already paying their Ees 13th month pay or
more in a calendar year in its equivalent at the time
of the issuance of the Revised Guidelines;

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c. Ers of those who are paid on purely basis of: XPNs:
i. Commission; 1. Government Ees, whether employed by the
National Government or and any of its political
NOTE: Bus drivers and conductors who are paid a subdivisions, including those employed in GOCCs
fixed or guaranteed minimum wage, in case their with original charters or created under special
commission be less than the statutory minimum, laws;
are entitled to a 13th-month pay equivalent to 1/12
of their total earnings during the calendar year. 2. Domestic helpers and persons in the personal
(Philippine Agricultural Commercial and Industrial service of another;
Workers Union v. NLRC, G.R. No. 107994, 14 Aug.
1995) 3. Managerial Ees, if they meet all of the following
conditions:
ii. Boundary; or
iii. Task; and a. Their primary duty is to manage the
iv. Fixed amount for performing a specific work establishment in which they are employed or of
irrespective of the time consumed in the a department or subdivision thereof;
performance thereof.
b. They customarily and regularly direct the work
XPN: Where the workers are paid on a piece-rate of two or more Ees therein; and
basis, in which case, the Er shall be covered by the
Revised Guidelines insofar as the workers are c. They have the authority to hire or fire other Ees
concerned. of lower rank; or their suggestions and
recommendations as to hiring, firing, and
NOTE: Piece-Rate Workers refer to those who are promotion, or any other change of status of other
paid a standard amount for every piece or unit of Ees are given particular weight.
work produced that is more or less regularly
replicated without regard to the time spent in 4. Field personnel and those whose time and
producing the same. performance is unsupervised by the Er, including
those who are engaged on:
d. Distressed Ers:
i. Currently incurring substantial losses; or a. Task or contract basis;
b. Purely commission basis; or
ii. In the case of non-profit institutions and c. Those who are paid a fixed amount for
organizations, where their income, whether performing work irrespective of the time
from donations, contributions, grants, and consumed in the performance thereof;
other earnings from any source, has
consistently declined by more than 40% of 5. Those who are already enjoying this benefit;
their normal income for the last two (2) years,
subject to the provision of Sec. 7 of P.D. 851. 6. Those enjoying vacation leave with pay of at least
five (5) days; and
Other types of employment entitled to 13 th month pay 7. Those employed in establishments regularly
employing less than 10 Ees. (Sec. 1, Rule V, Book III,
1. Part-time Ee; (Item 5(b), Revised Guidelines of PD 851) IRR)
2. Extras;
3. Casual Ee; and NOTE: Ees engaged on task or contract basis or paid on
4. Seasonal Ee. (BWC Opinion, 19 Dec. 1987) purely commission basis are not automatically exempted
from the grant of SIL, unless they fall under the
3. LEAVES classification of field personnel.

If required to be at specific places at specific times, Ees

a) SERVICE INCENTIVE LEAVE
including drivers cannot be said to be field personnel
despite the fact that they are performing work away from
Service Incentive Leave (SIL)
the principal office of the Ee; as such they are entitled to SIL.
(Autobus Transport Systems v. Bautista, G.R. No. 156367, 16
It is a five-day leave with pay for every Ee who has rendered
May 2005)
at least one year of service whether continuous or broken.
(Art. 95, LC)
b) MATERNITY LEAVE

Right to SIL
105-Day Expanded Maternity Leave Law
GR: Every Ee who has rendered at least one (1) year of
R.A. No. 11210 or the Expanded Maternity Leave Law
service shall be entitled to a yearly SIL of five (5) days with
(EMLL) was signed into law on 20 Feb. 2019 and took effect
pay. Leave pay means an Ee gets paid despite absence from
on 11 Mar. 2019.
work. (Azucena, 2016)

U N IV E R S I T Y O F S A N T O T O M A S 22
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 LABOR LAW AND SOCIAL LEGISLATION
Differences between Maternity Leave under the SSS d) SOLO PARENT LEAVE (R.A. No. 8972, as amended by
and the Expanded Maternity Leave Law R.A. No. 11861)

MATERNITY LEAVE (Sec. In addition to leave privileges under exiting laws, a

EMLL
14-A of forfeitable and noncumulative parental leave of not more
(R.A. No. 11210)
R.A. No. 8282) than seven (7) working days with pay every year shall be
Minimum of 105 days for granted to any solo parent employee, regardless of
60 days for normal
live childbirth, regardless employment status, who has rendered service of at least six
delivery;
of mode of delivery (6) months. (Sec. 8, Ibid.)

78 days for caesarean

60 days for miscarriage or Children or Dependents
delivery
ETP
Regardless of the civil They refer to:
Child must be legitimate status or legitimacy of the
child 1. Those living with and dependent upon the solo
Regardless of frequency of parent for support who are unmarried,
Limited to 4 childbirths unemployed and 22 years old or below; or
pregnancy
Full pay which consists of
2. those over 22 years old but who are unable to fully
Daily maternity benefit basic salary and
take care or protect themselves from abuse,
equivalent to 100% of her allowances as may be
neglect, cruelty, exploitation, or discrimination
ADSC provided under existing
because of a physical or mental disability or
guidelines
condition. (Sec. 3(b), R.A. No. 8972, as amended by
R.A. No. 11861)
Covered female workers

NOTE: this definition shall only apply for purposes of

Under the EMLL, maternity leave applies to all qualified
availing the benefits under this Act. (Ibid.)
female workers in the:

Spouse
1. Public sector;
2. Private sector; and
It refers to a husband or wife by virtue of a valid marriage
3. Informal economy;
or a partner in a common-law relationship as defined under
4. Voluntary contributors to the SSS; and
Art. 147 of the Family Code. (Sec. 3(f), Ibid.)
5. National athletes. (Sec. 1, Rule III, IRR of R.A. No. 11210)

e) LEAVE BENEFITS FOR WOMEN WORKERS UNDER

c) PATERNITY LEAVE
MAGNA CARTA OF WOMEN (R.A. No. 9710) and ANTI-
VIOLENCE AGAINST WOMEN AND THEIR CHILDREN OF
Every married male Ee in the private and public sectors
2004 (R.A. No. 9262)
shall be entitled to a paternity leave of seven days with full
pay for the first four (4) deliveries of the legitimate spouse
LEAVE BENEFITS FOR WOMEN WORKERS UNDER
with whom he is cohabiting. (Sec. 2, R.A. No. 8187)
MAGNA CARTA OF WOMEN

Conditions for Entitlement to Paternity Leave

Conditions for Entitlement

1. He is a married male Ee at the time of the delivery of

Any female Ee in the public and private sector regardless of
his child;
age and civil status shall be entitled to a special leave of two
(2) months with full pay based on her gross monthly
2. He is cohabiting with his spouse at the time she gives
compensation subject to existing laws, rules and
birth or suffers a miscarriage;
regulations due to surgery caused by gynecological
disorders under such terms and conditions:
NOTE: “spouse” refers to the lawful wife who is a
woman is is legally married to the male Ee
1. She has rendered at least six (6) months continuous
concerned. (Sec. 1(d), Revised IRRs of R.A. No. 8187)
aggregate employment service for the last 12 months
prior to surgery;
3. He has applied for paternity leave within a
reasonable period of time from the expected date of
2. She has filed an application for special leave; and
delivery by his pregnant spouse, or within such
period as may be provided by company rules or by
3. She has undergone surgery due to gynecological
collective bargaining agreement; and
disorders as certified by a competent physician. (Sec.
2, D.O. 112-A-12)
4. His wife has given birth or suffered a miscarriage.
(Sec. 3, IRR of R.A. No. 8187)
LEAVE BENEFITS FOR WOMEN WORKERS UNDER
VAWC
NOTE: In case of miscarriage, prior application for leave
shall not be required. (Sec. 4, Revised IRRs of R.A. No. 8187)

23 U N IV E R S I T Y O F S A N T O T O M A S
FACULTY OF CIVIL LAW
 PRE-WEEK NOTES 2023
f) COMPASSIONATE LEAVES Hazardous Workplaces

“GARDEN LEAVES” 1. Nature of work exposes the workers to dangerous

environmental elements, contaminants or work
4. SPECIAL GROUPS OF EMPLOYEES conditions;

2. Workers are engaged in construction work, logging,

a) WOMEN
firefighting, mining, quarrying, blasting, stevedoring,
dock work, deep-sea fishing, and mechanized farming;
(1) DISCRIMINATION

3. Workers are engaged in the manufacture or handling

Standard of Reasonable Test
of explosives and other pyrotechnic products; or
Under the standard reasonable test, the Er has the burden
4. Workers use or are exposed to heavy or power-driven
of proof to prove the existence of a reasonable business
tools.
necessity that would justify an employment policy. (Star
Paper Corp. v. Simbol, G.R. No. 164774, 12 Apr. 2006)
Hazardous Work and Activities
(2) STIPULATION AGAINST MARRIAGE
1. Work which exposes children to physical,
psychological or sexual abuse;
It shall be unlawful for the Er to:
2. work underground, under water, at dangerous
heights or at unguarded heights of two meters and
1. Require as a condition of employment or continuation
above, or in confined places;
of employment that a woman Ee shall not get married;
3. Work with dangerous machinery, equipment and
tools, or which involves manual handling or
2. Stipulate expressly or tacitly that upon getting
transport of heavy loads;
married, a woman Ee shall be deemed resigned or
4. Work in unhealthy environment which may expose
separated; or
children to hazardous processes;
5. Work under particularly difficult conditions such as
3. Actually dismiss, discharge, discriminate or otherwise
work for long hours or during the night, or work
prejudice a woman Ee merely by reason of her
where the child is unreasonably confined to the
marriage. (Art. 134, LC)
premises of the Er. (Sec. 3, D.O. No. 04 Series of 1999)

(3) PROHIBITED ACTS

c) KASAMBAHAYS
b) MINORS
Persons covered by R.A. No. 10361 otherwise known as
“Batas Kasambahay”
Working Child

All kasambahay engaged in domestic work, whether on a

Any child engaged as follows:
live-in or live-out arrangement, such as, but not limited to,
the following:
1. When the child is below 18 years of age in a work or
economic activity that is not child labor; or
1. General househelp;
2. Nursemaid or Yaya;
2. When the child is below 15 years of age:
3. Cook;
a. In work where he/she is directly under the
4. Gardener;
responsibility of his/her parents or legal
5. Laundry person;
guardian and where only members of the child’s
6. Working children or domestic workers 15 years old
family are employed; or
and above but below 18 years of age; or
7. Any person who regularly performs domestic work in
b. In public entertainment or information. (Ibid.)
one household on an occupational basis (live-out
arrangement). (Sec. 4(d), R.A. No. 10361)
Prohibition on the Employment of Children in Certain
Advertisements
Persons NOT Covered by Batas Kasambahay

No child below 18 years of age shall be employed as a model

1. Service providers;
in any advertisement directly or indirectly promoting
2. Family drivers;
3. Children under foster family arrangement; and
1. alcoholic beverages;
4. Any other person who performs work occasionally or
2. intoxicating drinks;
sporadically and not on an occupational and regular
3. tobacco and its byproducts;
basis. (Sec. 2, Rule 1, IRR of R.A. No. 10361)
4. gambling or any form of violence; or
5. pornography.

U N IV E R S I T Y O F S A N T O T O M A S 24
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 LABOR LAW AND SOCIAL LEGISLATION
NOTE: Sec. 4(d) of the Kasambahay Law pertaining to who e) NIGHT WORKERS
are included in the enumeration of domestic or household
help cannot also be interpreted to include family drivers Night Work
because the latter category of worker is clearly not
included. (Atienza v. Saluta, G.R. No. 233413, 17 June 2019) Night work is at least 7 consecutive hours of work between
10:00 PM and 6:00 AM. (Sec. 2, D.O. No. 119-12)
Other Agreements that the Er and the Kasambahay Can
Enter into Relative to the Latter’s Weekly Rest Day and Persons Covered by the Provisions on Night Work
SIL
GR: All persons who shall be employed or permitted or
1. Offsetting a day of absence with a particular rest day; suffered to work at night.
2. Waiving a particular rest day in return for an
equivalent daily rate of pay; XPN: Those employed in agriculture, stock raising, fishing,
3. Accumulating rest days not exceeding 5 days; maritime transport and inland navigation, during a period
4. Adding the accumulated rest days (max. of 5 days) to of not less than 7 consecutive hours, including the interval
the five-day SIL; and from midnight (12am) to five o’clock in the morning (5am),
5. Waiving a particular SIL in return for an equivalent to be determined by the SOLE after consulting the workers’
daily rate of pay. representatives/ labor organizations and Ers. (Art. 154, LC
as added by RA 10151 approved on June 21, 2011) (Art. 154,
Er’s Liability in Case the Kasambahay Refuses to Be a LC as added by R.A. No. 10151 approved on 21 June 2011)
Member of SSS, PhilHealth, and PAG-IBIG
f) APPRENTICES AND LEARNERS
The Er is still liable under the SSS, PhilHealth, and PAG-IBIG
laws in case the kasambahay refuses membership with Apprentice
those agencies, because it is mandatory and non-negotiable.
(Q&A on Batas Kasambahay, DOLE) A person undergoing training for an approved
apprenticeable occupation during an established period
Person Liable to Pay the SSS premium, PhilHealth and assured by an apprenticeship agreement. (Sec. 4(k), R.A. No.
PAG-IBIG Contributions of the Kasambahay 7796)

GR: The Er shall pay the SSS premium, PhilHealth, and PAG- Apprenticeship
IBIG contributions of the kasambahay
Training within employment with compulsory related
XPN: If the wage of the kasambahay is P5,000.00 or more, theoretical instructions involving a contract between an
the kasambahay will pay his/her share in the apprentice and an Er on an approved apprenticeable
premiums/contributions. (Sec. 9, Rule IV, IRR of R.A. No. occupation for a duration not exceeding 6 months. (Sec. 4(j),
10361) R.A. No. 7796)

d) HOMEWORKERS Learner

Househelpers vs. Homeworkers (2017 BAR) A person hired as a trainee in industrial occupations which
are non-apprenticeable and which may be learned through
HOUSEHELPERS HOMEWORKERS practical training on the job not exceeding 3 months,
Performs in or about his whether or not such practical training is supplemented by
own home any processing theoretical instructions. (Sec. 1, Rule VII, Book II, Omnibus
or fabrication of goods or Rules Implementing the Labor Code)
Ministers to the personal materials, in whole or in
needs and comfort of his Er part, which have been Learnership
in the latter’s home furnished directly or
indirectly, by an Er and Any practical training on a learnable occupation which may
sold thereafter to the or may not be supplemented by related theoretical
latter. instructions for a period not exceeding 3 months. (TESDA
Circular, No. 120, Series of 2020)
Liability of the Er if the Contractor or Subcontractor
Fails to Pay the Wages or Earnings of his Ees g) PERSONS WITH DISABILITIES

Er shall be jointly and severally liable with the contractor R.A. No. 7277 or the Magna Carta for Disabled Persons
or subcontractor to the workers of the latter to the extent ensures equal opportunities for disabled persons and
that such work is performed under such contract, in the prohibits discrimination against them.
same manner as if the Ees or homeworkers were directly
engaged by the Er. (Sec. 11, D.O. No. 05-92)

25 U N IV E R S I T Y O F S A N T O T O M A S
FACULTY OF CIVIL LAW
 PRE-WEEK NOTES 2023
Persons with Disability (PWDs) 2. Private entities that improve or modify their physical
facilities in order to provide reasonable
Those whose earning capacity is impaired by: accommodation for disabled persons shall also be
1. Physical deficiency; entitled to an additional deduction from their net
2. Age; taxable income, equivalent to 50% of the direct costs
3. Injury; of the improvements or modifications. (Sec. 8, R.A. No.
4. Disease; 7277)
5. Mental deficiency; or
6. Illness. The financial incentive, if any, granted by law to SPQ
Garments whose cutters and sewers in its garments-
Qualified Disabled Employee for-export operations are 80% staffed by deaf and
deaf-mute workers is additional deduction from its
It provides for Equal Opportunity for Employment by gross income equivalent to 25% of amount paid as
stating that no disabled person shall be denied access to salaries to persons with disability (2013 BAR).
opportunities for suitable employment.
Basis: Magna Carta for Disabled Persons
A qualified disabled Ee shall be subject to the same terms
and conditions of employment and the same compensation, 5. SEXUAL HARASSMENT IN THE WORK ENVIRONMENT
privileges, benefits, fringe benefits, incentives or
allowances as a qualified able-bodied person. (Sec. 5, R.A.
a) SEXUAL HARASSMENT ACT (R.A. No. 7877)
No. 7277)

Requisites (Demand-IAM-WET)
Employment of PWDs

1. Act is committed in a Work, Education, or Training-

1. When their employment is necessary to prevent
related environment;
curtailment of employment opportunities; and
2. The doer, the harasser, is any person who has
2. When it will not create unfair competition in labor
Authority, Influence or Moral ascendancy over
costs or lower working standards. (Art. 79, LC)
another; and
3. Doer Demands or requests, or requires a sexual
Wage Rate (2013 BAR)
favor from the victim.

GR: Handicapped workers are entitled to not less than 75%

NOTE: It does not matter whether such demand is
of the applicable adjusted minimum wage. (Art. 80, LC)
accepted or not. (Sec. 3, R.A. No. 7877)

XPN: All qualified handicapped workers shall receive the

IN A WORK-RELATED OR EMPLOYMENT
full amount of the minimum wage rate prescribed herein
ENVIRONMENT
pursuant to R.A. No. 7277. (Wage Order No. NCR-18,
Effective 04 Oct. 2013)
IN AN EDUCATION OR TRAINING-RELATED
ENVIRONMENT
NOTE: Generally, if a PWD is hired as an apprentice or
learner, he shall be paid not less than 75% of the applicable
EXTENT OF LIABILITY OF THE EMPLOYER OR HEAD OF
minimum wage.
OFFICE

XPN: If the PWD, however is hired as a learner and

b) SAFE SPACES ACT (Art. IV of R.A. No. 11313 Only;
employed in piece or incentive-rate jobs during the training
Exclude Liability of Employers)
period, he shall be paid 100% of the applicable minimum
wage. (Chan, 2017)
Gender-Based Sexual Harassment (GBSH) in the
Workplace
(1) DISCRIMINATION

The crime of GBSH in the workplace includes the following:

(a) MAGNA CARTA FOR DISABLED PERSONS (R.A. No.
7277)
1. An act or series of acts involving any unwelcome
sexual advances, requests or demand for sexual favors
(b) MENTAL HEALTH ACT (R.A. No. 11036)
or any act of sexual nature, whether done verbally,
physically or through the use of technology such as
(2) INCENTIVES FOR EMPLOYERS
text messaging or electronic mail or through any other
forms of information and communication systems,
Incentives for Employers Who Are Employing Disabled
that has or could have a detrimental effect on the
Workers
conditions of an individual’s employment or
education, job performance or opportunities;
1. Entitled to an additional deduction, from their gross
income, equivalent to 25% of the total amount paid as
2. A conduct of sexual nature and other conduct-based
salaries and wages to disabled persons;
on sex affecting the dignity of a person, which is
unwelcome, unreasonable, and offensive to the

U N IV E R S I T Y O F S A N T O T O M A S 26
2023 GOLDEN NOTES
 LABOR LAW AND SOCIAL LEGISLATION
recipient, whether done verbally, physically or a) COVERAGE
through the use of technology such as text messaging
or electronic mail or through any other forms of COMPULSORY COVERAGE
information and communication systems;
a. All Ees not over 60 years of age and their Ers;
3. A conduct that is unwelcome and pervasive and b. Domestic helpers whose income is not less than
creates an intimidating, hostile or humiliating P1,000/month and not over 60 years of age and
environment for the recipient. (Sec. 16, R.A. No. 11313) their Ers;
c. Self–employed persons as may be determined by
NOTE: GBSH may also be committed between peers the Commission.
and those committed to a superior officer by a d. All sea-based and land-based OFWs not over 60
subordinate, or to a teacher by a student, or to a years of age.
trainer by a trainee. (Ibid.)
Exclusions from coverage
Workplaces include all sites, locations, spaces, where
work is being undertaken by an Ee within or outside The following are excluded from compulsory coverage
the premises of the usual place of business of the Er. under the SSS Act:
(Sec. 18, IRR of R.A. No. 11313)
1. Services where there is no Er-Ee relationship in
Liability of Ers accordance with existing labor laws, rules, regulations,
and jurisprudence;
In addition to liabilities for committing acts of GBSH, Ers 2. Services performed in the employ of the Philippine
may also be held responsible for: Government or instrumentality or agency thereof;
3. Services performed in the employ of a foreign
1. Non-implementation of their duties under Sec. 17 government or international organization, or their
of the law, as provided in the penal provisions; or wholly-owned instrumentality; and
4. Such other services performed by temporary and
2. Not taking action on reported acts of GBSH other Ees which may be excluded by regulation of the
committed in the workplace. (Sec. 19, IRR of R.A. Commission. (Sec. 8, (j), R.A. No. 11199)
No. 11313)
VOLUNTARY COVERAGE

C. SOCIAL WELFARE LEGISLATION a. Spouses who devote full time to managing the
household and family affairs;

XPN: They are also engaged in other vocation or

1. SSS LAW (R.A. No. 8282, as amended by R.A. No. employment which is subject to mandatory
11199) coverage. (Sec. 9(b), R.A. No. 11199)

Effective date of SSS Coverage b. An OFW upon the termination of his/her

employment overseas (Sec. 9-B(f), R.A. No. 11199);
Effective Date of SSS Coverage c. A covered Ee who was separated from employment
Er On the first day of operation who continues to pay his/her contributions;
Ee On the first day of employment d. Self-employed who realizes no income for a certain
Upon registration with the SSS; month; and
Self-employed registration shall mean e. Filipino permanent migrants, including Filipino
payment of first contribution immigrants, permanent residents and naturalized
Sea-based OFW First day of employment citizens of their host countries. (Sec. 9-B(g), R.A. No.
Based on the provisions of the 11199)
Land-based OFW
Agreement and its
covered under BLAs BY AGREEMENT
implementing arrangement
Land-based OFW
Applicable month and year of GR: Any foreign government, international organization, or
NOT covered under
the first contribution payment their wholly owned instrumentality employing workers in
BLAs
Voluntary coverage the Philippines or employing Filipinos outside of the
Applicable month and year of Philippines.
of land-based
the first contribution payment.
overseas Filipinos
XPN: Those already covered by their respective civil service
(Rule 15, IRR, R.A. No. 11199)
retirement systems.

27 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
b) DEPENDENTS AND BENEFICIARIES 2. GSIS LAW (R.A. No. 8291)

DEPENDENTS
Purpose for the Enactment of the GSIS Law

The dependents shall be the following:

To provide and administer the following social security
benefits for government Ees:
1. The legal spouse entitled by law to receive support
from the member;
1. Compulsory Life Insurance;
2. Optional Life Insurance;
2. The legitimate, legitimated or legally adopted, and
3. Retirement Benefits;
illegitimate child who is
4. Disability Benefits due to work-related
contingencies; and
a. Unmarried;
5. Death Benefits.
b. not gainfully employed; and
c. has not reached 21 years of age; or
a) COVERAGE
d. if over 21 years of age, he is congenitally or
while still a minor has been permanently
The GSIS covers all Ees irrespective of employment status,
incapacitated and incapable of self-support,
who are employed with:
physically or mentally; and

1. The national government, its political subdivisions,

3. The parent who is receiving regular support from the
branches, agencies, or instrumentalities;
member. (Sec. 8(e), R.A. No. 11199)
2. GOCCs;
3. Government financial institutions with original
BENEFICIARIES
charters;
4. Constitutional commissions; and
Primary Beneficiaries
5. The judiciary.

The primary beneficiaries of the member are the following:

Coverage of Life Insurance, Retirement and Other Social
1. The dependent spouse, until he or she remarries;
Security Protection
and
2. The dependent legitimate, legitimated, or legally
GR: All members of the GSIS shall have life insurance,
adopted children and the illegitimate children.
retirement, and all other social security protections such as
(Sec. 12, IRR of the R.A. No. 11199)
disability, survivorship, separation, and unemployment
benefits. (Sec. 3, R.A. No. 8291)
Secondary Beneficiaries

XPNs: The members of the following shall have life

In the absence of primary beneficiaries, the secondary
insurance only:
beneficiaries are as follows:
1. Dependent parents; or
1. The Judiciary; and
2. In the absence of dependent parents, any other
2. The Constitutional Commissions. (Ibid.)
person/s designated and reported by the member
to the SSS. (Sec. 8(k), R.A. No. 11199)
b) DEPENDENTS AND BENEFICIARIES

c) BENEFITS
Dependents

Benefits under the SSS Act

1. Legitimate spouse dependent for support upon the
member or pensioner;
a. Sickness Benefits;
2. Unmarried and not gainfully employed legitimate,
b. Permanent Disability Benefits;
legitimated, legally adopted, or illegitimate child, or
c. Maternity Leave Benefits;
over the age of majority but incapacitated or incapable
d. Retirement Benefits;
of self-support due to mental or physical defect
e. Death Benefits;
acquired prior to age of majority; and
f. Funeral Benefits; and
g. Unemployment Insurance or Involuntary
3. Parents dependent upon the member for support. (Sec.
Separation Benefits.
2(f), R.A. No. 8291)

Non-transferability of Benefits
Beneficiaries

Benefits payable are not transferable and no power of

1. Primary beneficiaries
attorney or other document executed by those entitled
a. Legal dependent spouse, until he/she remarries;
thereto in favor of any agent, attorney or any other person
and
for the collection thereof on their behalf shall be recognized,
b. Dependent children. (Sec. 2(g), R.A. No. 8291)
except when the payees are physically unable to collect
personally such benefits. (Sec. 15, R.A. No. 11199)

U N IV E R S I T Y O F S A N T O T O M A S 28
2023 GOLDEN NOTES
 LABOR LAW AND SOCIAL LEGISLATION
2. Secondary beneficiaries 4. where the employer, as an incident of the
a. Dependent parents; and employment, provides the means of transportation
b. Legitimate descendants, subject to restrictions on to and from the place of employment. (Iloilo Dock &
dependent children. (Sec. 2(h), R.A. No. 8291) Engineering Co. v. Workmen's Compensation
Commission, G.R. No. L-26341, 27 Nov. 1968)
c) BENEFITS
Beneficiaries under the Labor Code
Benefits under the GSIS Act
I. Primary Beneficiaries
a. Separation benefits;
b. Unemployment or involuntary separation benefits; 1. The legitimate spouse until he remarries; and
c. Retirement benefits;
d. Permanent disability benefits; 2. Legitimate, legitimated, legally adopted or
e. Temporary disability benefits; acknowledged natural children, who are
f. Survivorship benefits; unmarried not gainfully employed, not over 21
g. Funeral benefits; years of age, or over 21 years of age provided that
h. Life insurance; and he is incapacitated and incapable of self-support
i. Such other benefits and protection as may be due to physical or mental defect, which is
extended to them by the GSIS such as loans. congenital or acquired during minority.

3. DISABILITY AND DEATH BENEFITS II. Secondary beneficiaries

1. The legitimate parents wholly dependent upon

a) LABOR CODE
the Ee for regular support; and

Employees’ Compensation Program (ECP)

2. The legitimate descendants and illegitimate
children who are unmarried, not gainfully
The State shall promote and develop a tax-exempt ECP
employed, and not over 21 years of age, or over 21
whereby the Ees and their dependents, in the event of work-
years of age provided that he is incapacitated and
connected disability or death, may promptly secure
incapable of self- support due to physical or
adequate income benefit and medical related benefits. (Art.
mental defect which is congenital or acquired
172, LC)
during minority. (Sec. 1(c), Rule XV, Amended Rules
on EC)
The basic features of the new program are:

DISABILITY BENEFITS
1. Integration of benefits;
2. Increase in benefits;
Disability refers to the loss or impairment of a physical or
3. Prompt payment of income benefits;
mental function resulting from injury or sickness. (Art.
4. Legal services dispensed with;
173(n), LC)
5. Wider coverage; and
6. A more balanced rehabilitation program. (Poquiz,
Kinds of Disability
2019)

There are three (3) kinds of disability benefits under the

Going and Coming Rule
Labor Code:

GR: In the absence of special circumstances, an employee

a. Temporary total disability (Art. 197, LC)
injured in, going to, or coming from his place of work is
b. Permanent total disability (Art. 198, LC)
excluded from the benefits of workmen's compensation
c. Permanent partial disability (Art. 199, LC)
acts. (Iloilo Dock & Engineering Co. v. Workmen's
Compensation Commission, G.R. No. L-26341, 27 Nov. 1968)
a. Temporary Total Disability (TTD)

XPNs:
A total disability is temporary if as a result of the injury or
sickness, the Ee is unable to perform any gainful occupation
1. Where the employee is proceeding to or from his
for a continuous period not exceeding 120 days, or where
work on the premises of his employer;
the injury or sickness still requires medical attendance
beyond 120 days but not exceed 240 days from the onset of
2. Where the employee is about to enter or about to
disability. (Sec. 2(a), Rule VII, Amended Rules on EC)
leave the premises of his employer by way of the
exclusive or customary means of ingress and
b. Permanent Total Disability (PTD)
egress also known as the Proximity Rule;
3. Where the employee is charged, while on his way
A disability is total and permanent if as a result of the injury
to or from his place of employment or at his home,
or sickness, the Ee is unable to perform any gainful
or during his employment, with some duty or
occupation for a continuous period exceeding 120 days
special errand connected with his employment;
except when the disability not exceeding 240 days is
and

29 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
declared as temporary total disability. (Sec. 2(b), Rule VII, Period of Entitlement
Amended Rules on EC)
I. For Primary Beneficiaries
Total Disabilities Deemed Permanent
1. The monthly income benefit shall be paid beginning at
The following total disabilities shall be considered the month of death and shall continue to be paid as long
permanent: as the beneficiaries are entitled thereto. With respect to
the surviving legitimate spouse, the qualification is that
1. Temporary total disability lasting continuously for he/she has not remarried. For dependent children, the
more than 120 days, except as otherwise provided qualifications are that they must be:
for temporary total disability;
2. Complete loss of sight of both eyes; a. Unmarried;
3. Loss of two limbs at or above the ankle or wrist; b. Not gainfully employed; and
4. Permanent complete paralysis of two limbs; c. Over 21 years of age provided he/she is
5. Brain injury resulting in incurable imbecility and incapable of self-support due to a physical or
insanity; and mental defect which is congenital or acquired
6. Such cases as determine by the System and during minority.
approved by the Commission. (Sec. 1, Rule XI,
Amended Rules on EC) 2. The monthly income benefit shall be guaranteed for five
(5) years which in no case shall be less than P15,000.00.
c. Permanent Partial Disability (PPD) Thereafter, the beneficiaries shall be paid the monthly
income benefit for as long as they are entitled thereto.
A disability is partial and permanent if as a result of injury (Sec. 2(A), Rule XIII, Amended Rules on EC)
or sickness, the Ee suffers a permanent partial loss of the use
of any part of his body. (Sec. 2(c), Rule VII, Amended Rules on II. For Secondary Beneficiaries:
EC)
The income benefit shall be 60 times the monthly income
Period of Entitlement benefit of a primary beneficiary, which in no case be less
than P15,000.00, which shall likewise be paid in monthly
The monthly income benefit shall be paid beginning on the pension. (Sec. 2(B), Rule XIII, Amended Rules on EC)
first month of such disability, but no longer than the
designated number of months in the following schedule: b) POEA-STANDARD EMPLOYMENT CONTRACT
(Art. 199, LC)
DISABILITY BENEFITS
Complete and Permanent Number of Months
Loss of the Use of Elements of a Compensable Injury
One thumb 10
One index finger 8 1. The injury or illness is work-related; and
One middle finger 6 2. It occurred during the term of the seafarer’s contract.
One ring finger 5
One little finger 3 Kinds of Disability
One big toe 6
One toe 3 1. Permanent disability is the inability of a worker to
One hand 39 perform his job for more than 120 days, regardless of
One arm 50 whether or not he loses the use of any part of his body.
One foot 31
2. Total disability means the disablement of an Ee to earn
One leg 46
wages in the same kind of work of similar nature that
One ear 10
he was trained for, accustomed to perform, or any kind
Both ears 20
of work which a person of his mentality and
Hearing of one ear 10
attainments could do.
Hearing of both ears 50
Sight of one eye 25 Third-Doctor Referral

DEATH BENEFITS If the physician appointed by the seafarer disagrees with

the company-designated physician's assessment, the
Compensable death refers to death which is the result of a opinion of a third doctor may be agreed jointly between
work-related injury or sickness. (Chan, 2019) the Er and the seafarer to be the decision final and binding
on them. Non-compliance with this procedure would lead
to the conclusion that the determination of the company-
designated physician would prevail. (Gargallo v. Dohle
Seafront Crewing, G.R. No. 215551, 17 Aug. 2016)

U N IV E R S I T Y O F S A N T O T O M A S 30
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 LABOR LAW AND SOCIAL LEGISLATION
DEATH BENEFITS EMPLOYEES RESTRICTED TO FORM, JOIN, OR ASSIST
LABOR ORGANIZATIONS
GR: The seafarer’s death should occur during the term of his
employment. a. Managerial Ees;
b. Supervisory Ees;
XPN: The seafarer’s death occurring after the termination c. Confidential Ees (in the field of labor relations);
of his employment due to his medical repatriation on d. Ee-members of a cooperative;
account of a work-related injury or illness. This is based on e. Government Ees;
a liberal construction of the 2000 POEA-SEC as impelled by f. Ees of international organizations;
the plight of the bereaved heirs who stand to be deprived of g. Foreign workers; and
a just and reasonable compensation for the seafarer’s death, h. Religious objectors.
notwithstanding its evident work-connection. (Sec. 20(B),
2010 POEA-SEC) Supervisory Ees

Supervisory Ees are those who, in the interest of the Er,

D. LABOR RELATIONS effectively recommend such managerial actions if the
exercise of such authority is not merely routinary or clerical
in nature but requires the use of independent judgment.
(Art. 219(m), LC)
1. RIGHT TO SELF-ORGANIZATION
Supervisory Ees are allowed to organize, but they cannot
Collective Bargaining vs. Dealing with Employer form, join, or assist a rank-and-file union. (Azucena, 2016)

COLLECTIVE Confidential Employees (in the field of labor relations)

DEALING WITH ER
BARGAINING
A right that may be A confidential Ee is one who assists and acts in a
A generic description of
acquired by a labor confidential capacity to, or has access to confidential
interaction between Er and
organization after matters of, persons who exercise managerial functions in
Ees concerning grievances,
registering itself with the the field of labor relations. (Philips Industrial Development v.
wages, work hours, and
DOLE and after being NLRC, G.R. No. 88957, 25 June 1992)
other terms and conditions
recognized or certified by
of employment, even if the
DOLE as the exclusive EMPLOYEE-MEMBER OF A COOPERATIVE
Ees’ group is not registered
bargaining representative
with the DOLE.
of the Ees. An Ee of a cooperative who is also a member and co-owner
(Azucena, 2013) thereof cannot invoke the right to collective bargaining, for
an owner cannot bargain with himself or his co-owners.
a) COVERAGE (San Jose Electric Service Cooperative, Inc. v. Ministry of
Labor, G.R. No. 77231, 31 May 1989)
Who may form a labor organization for purposes of
mutual aid and protection GOVERNMENT EMPLOYEES

1. All persons employed in commercial, industrial and EMPLOYEES OF INTERNATIONAL ORGANIZATIONS

agricultural enterprises and in religious, charitable,
medical, or educational institutions, whether FOREIGN WORKERS
operating for profit or not;
GR: Foreigners are prohibited from engaging in all forms of
2. Ambulant, intermittent, and itinerant workers, self- trade union activities.
employed people, rural workers and those without any
definite Ers may form labor organizations for their XPN: However, an alien working in the country with a valid
mutual aid and protection. (Art. 253, LC) working permit may exercise the right to self-organization
if they are nationals of a country which grants the same or
2. Aliens working in the country with valid permits similar right to Filipino workers.
issued by the DOLE may exercise the right to self-
organization and join or assist labor organizations of RELIGIOUS OBJECTORS
their own choosing for purposes of collective
bargaining: Provided, that said aliens are nationals of a Members of religious sects cannot be compelled or coerced
country which grants the same or similar rights to to join labor unions even when said unions have closed-
Filipino workers. (Principle of Reciprocity) shop agreements with the Ers. Free exercise of religious
belief is superior to contract rights. In case of conflict, the
3. Ees of government corporations established under the latter must yield to the former. (Victoriano v. Elizalde Rope
Corporation Code shall have the right to organize and Worker’s Union, G.R. No. L-25246, 12 Sept. 1974)
to bargain collectively with their respective Ers. All
other Ees in the civil service shall have the right to
form associations for purposes not contrary to law.

31 U N IV E R S I T Y O F S A N T O T O M A S
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b) ELIGIBILITY FOR MEMBERSHIP same duties, and responsibilities and substantially similar
compensation and working conditions. (San Miguel Corp.
c) DOCTRINE OF NECESSARY IMPLICATION Ees Union-PTGWO v. Confesor, G.R. No. 111262, 19 Sept.
1996)
The Doctrine of Necessary Implication states that what is
implied in a statute is as much a part thereof as that which WILL OF THE EMPLOYEES or
is expressed. While Art. 255 of the Labor Code singles out “GLOBE DOCTRINE”
managerial Ees as ineligible to join, assist and form any
labor organization, under the doctrine of necessary This principle is based on the desires of the Ees. In defining
implication, confidential Ees are similarly disqualified. the appropriate bargaining unit, the determining factor is
(NATU - Republic Planters Bank Supervisors Chapter v. Hon. the desire of the workers themselves. While the desires of
Torres, G.R. No. 93468, 29 Dec. 1994) Ees with respect to their inclusion in bargaining unit is not
controlling, it is a factor which would be taken into
d) COMMINGLING OR MIXED MEMBERSHIP consideration in reaching a decision. (Globe Machine &
Stamping Co., 3 NLRB 294, 1937)
The Separation of Union Doctrine prohibits a situation
where the supervisory union and the rank-and-file union Grounds for Cancellation of Union Registration (R-E-V)
operating within the same establishment are both affiliated
with one and the same federation or national union. This is 1. Misrepresentation, false statement, or fraud in
because of the possible conflict of interest which may arise connection with the adoption or Ratification of the
between the supervisors and rank-and-file Ees, in the areas constitution and by-laws or amendments thereto, the
of collective bargaining and strike. (Atlas Lithographic minutes of ratification, and the list of members who
Services, Inc. v. Hon. Laguesma, G.R. No. 96566, 06 Jan. 1992) took part in the ratification;
However, with the amendement of Art. 255 by R.A. No.
9481, the law now allows a rank-and-file union and a 2. Misrepresentation, false statements, or fraud in
supervisory union to operate within the same bargaining connection with the Election of officers, minutes of
unit to join the one and the same federation or national the election of officers, and the list of voters;
union.
3. Voluntary dissolution by the members. (Art. 247, LC)
e) EFFECT OF INCLUSION AS MEMBERS OF EMPLOYEES
OUTSIDE OF THE BARGAINING UNIT COLLECTIVE BARGAINING HISTORY DOCTRINE

The inclusion as union members of Ees outside the This principle puts premium to the prior collective
bargaining unit shall not be a ground for the cancellation of bargaining history and affinity of the Ees in determining the
the registration of the union. Said Ees are automatically appropriate bargaining unit. However, the existence of a
deemed removed from the list of membership of said union. prior collective bargaining history has been held as neither
(Art. 256, LC) decisive nor conclusive in determination of what
constitutes an appropriate bargaining.
RIGHT TO UNION MEMBERSHIP
EMPLOYMENT STATUS DOCTRINE
Right to join a union acquired from first day of
employment The determination of the appropriate bargaining unit based
on the employment status of the Ees is considered as an
Any Ee, whether employed for a definite period or not shall, acceptable mode. (Chan, 2019)
beginning on his first day of service, be considered an Ee for
purposes of membership in any labor union. (Art. 292(c), 3. BARGAINING REPRESENTATIVE
LC)

Organized Establishment
2. BARGAINING UNIT
It is an enterprise where there exists a recognized or
Tests to determine the appropriate bargaining unit certified sole and exclusive bargaining agent.

1. Community or mutuality of interest Unorganized establishment

2. Will of the Ees or “Globe Doctrine”
3. Collective bargaining history It is an enterprise where no union has yet been duly
4. Similarity of employment status recognized or certified as bargaining representative.

COMMONALITY OR MUTUALITY OF INTEREST Bargaining representative of the Employees for

purposes of collective bargaining
Under this doctrine, the Ees sought to be represented by the
collective bargaining agent must have community or The labor organization designated or selected by the
mutuality of interest in terms of employment and working majority of the Ees in an appropriate collective bargaining
conditions as evidenced by the type of work they perform. unit shall be the exclusive representative of the Ees in such
This is characterized by similarity of employment status, unit for the purpose of CB. However, an individual Ee or

U N IV E R S I T Y O F S A N T O T O M A S 32
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 LABOR LAW AND SOCIAL LEGISLATION
group of Ees shall have the right at any time to present Q: What if it was granted?
grievances to their Er. (Art. 267, LC)
A: Then the certified union shall enjoy the rights and
Methods of determining the exclusive bargaining privileges of an EBA for the BU.
representative:
CERTIFICATION ELECTION
1. Sole and Exclusive Bargaining Agent (SEBA)
Certification; Certification Election
2. Certification Election; and
3. Consent Election. It is the process of determining through secret ballot the
sole and exclusive representative of the Ees in an
SEBA CERTIFICATION appropriate bargaining unit, for purposes of collective
bargaining or negotiation. (Sec. 1(h), Rule I, Book V, IRR)
It is a process where a union requests the DOLE Regional
Director to recognize and certify the union as the Sole and Requisites For Certification Election in an Unorganized
Exclusive Bargaining Agent (SEBA) of the Barganing Unit Establishment
(BU) it purports to represent for purposes of collective
bargaining with the Er. An unorganized establishment is a bargaining unit with no
recognized or certified bargaining agent. It does not
Conditions: necessarily refer to an entire company.

1. The bargaining unit is not unionized; NOTE: It may happen that the rank-and-file unit has a
2. The requesting union is the only union in that bargaining agent while the supervisory unit still does not
bargaining unit; and have such agent; thus, the former is already an “organized
3. The CBU majority are members of the union. establishment” while the latter remains, in the same
company, an unorganized establishment.
Where to file the Request
The certification election shall be automatically conducted
Any legitimate labor organization may file a Request in the upon the filing of a PCE by a LLO.
DOLE Regional Office which issued its certificate for
registration or certificate of creation of chartered local, as Requisites For Certification Election in an Organized
the case may be. Establishment

Effect of the Issuance of the Certification as SEBA The Mediator-Arbiter is required to automatically order the
conduct of a CE by secret ballot in an organized
a. The certified union shall enjoy all the rights and establishment as soon as the following requisites are met:
privileges of an exclusive bargaining agent of all the Ees
in the covered bargaining unit. 1. A petition questioning the majority status of the
incumbent bargaining agent is filed before the
b. Certification Bar Rule - The issuance of the SEBA DOLE within the 60-day freedom period;
Certification as SEBA bars the filing of a petition for
election by any labor organization for a period of one 2. Such petition is verified; and
(1) year from the date of issuance.
3. The petition is supported by the written consent
Unorganized – More Than One Legitimate Labor of at least 25% of all the Ees in the bargaining unit.
Organization (Art. 268, LC; TUPAS-WFTU v. Laguesma, G.R. No.
102350, 30 June 1994)
If the DOLE Regional Director finds that the establishment
unorganized with more than one legitimate labor Effect if the Petition for Certification Election was NOT
organization, he should refer the same to the Election accompanied by the requisite 25% Consent Signatures
Officer for the conduct of certification election. (Sec. 3, D.O.
No. 40-1-15) Under the Implementing Rules, absence or failure to submit
the written consent of at least 25% of all the Ees in the
Organized bargaining unit to support the petition is a ground for
denying the said petition.
If the DOLE Regional Director finds that the establishment
organized, he should refer the same to the Mediator-Arbiter Notwithstanding the provision of the IRR that failure to
for the determination of the propriety of conducting a submit the required 25% consent signatures is a ground for
certification election. the denial of the petition, the Supreme Court ruled that, it is
within the discretion of the Med-Arbiter whether to grant
Q: What would happen if the request is denied? or deny the petition despite absence of the required 25%
written consent. (Port Workers Union v. Bienvenido
A: It may be referred to an election officer for the conduct Laguesma, G.R. Nos. 94929-30, 18 Mar. 1992)
of a certification election.

33 U N IV E R S I T Y O F S A N T O T O M A S
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CONSENT ELECTION Bargaining Deadlock Bar Rule

Consent election Under this rule, a petition for certification election may not
be entertained when a bargaining deadlock to which an
It is an election that is voluntarily agreed upon by the incumbent or certified bargaining agent is a party has been
parties with or without the intervention of DOLE for the submitted to conciliation or has become the subject of a
purpose of determining the EBA. valid notice of strike or lockout.

Certification Election vs. Consent Election Contract Bar Rule

CERTIFICATION CONSENT Under this rule, a petition for certification election may not
ELECTION ELECTION be filed when a CBA between the Er and a duly recognized
Voluntarily agreed upon by or certified bargaining agent has been registered with the
Ordered by DOLE the parties with or without BLR in accordance with the Labor Code. Where the CBA is
the intervention of DOLE duly registered, a petition for certification election may be
filed within the 60-day freedom period prior to its expiry.
BARS TO THE HOLDING OF CERTIFICATION/CONSENT
ELECTION Requisites of Contract Bar

GR: In the absence of a CBA duly registered in accordance 1. It must contain substantial terms and conditions of
with Art. 237 of the Labor Code, a petition for certification employment sufficient to stabilize the bargaining
election may be filed at any time. (Sec. 1, Rule VIII, Book V, relationship;
IRR) 2. It must be signed by the parties; and
3. The effective date and expiration date must be readily
Bar Rules discernible on the face of the contract.

No certification election may be held under the following Effect of Withdrawal of Signature by the Employees
rules:
Critical factor to consider is when the withdrawal
1. Certification year bar rule; happened:
2. Negotiations bar rule;
3. Bargaining deadlock bar rule; or 1. If it is made before the filing, the withdrawal is
4. Contract bar rule. presumed voluntary and affects the propriety of the
petition.
Certification Year Bar Rule
2. If it is made after the filing, the withdrawal is deemed
Under this rule, a petition for certification election may not involuntary and does not cause the dismissal of the
be filed within one (1) year from the date a valid petition.
certification, consent, run-off, or re-run election has been
conducted within the bargaining unit. This is also called as Appeal of Grant or Denial of PCE
the 12-month Bar rule.
It would depend if the establishment is organized or
XPN to the Certification Year Bar Rule unorganized.

When there is a failure of election, when the number of 1. In case of organized establishment, it is appealable.
votes cast in a certification or consent election is less than
the majority of the number of eligible votes and there is no 2. In case of unorganized establishment, it is not
material challenged votes. appealable, except if the petition is denied.

Failure of election does not bar the holding of another Double Majority Rule (certification election)
certification or consent election within six (6) months.
1. Valid election (First Majority rule) – Majority of
Negotiation Bar Rule eligible voters shall have validly cast their votes.

Under this rule, no petition for certification election should 2. Winning Union (Second Majority rule) – The winner
be entertained while the sole and exclusive bargaining who obtained majority of the valid votes cast shall be
agent and the Er have commenced and sustained declared as the bargaining agent in the bargaining
negotiations in good faith within the period of one (1) year unit.
from the date of a valid certification, consent, run-off, re-
run, or from the date of voluntary recognition.

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 LABOR LAW AND SOCIAL LEGISLATION
FAILURE OF ELECTION, RUN-OFF ELECTION, and RE- In both instances, the “no union” is also a choice.
RUN ELECTION
Er as a Bystander (Bystander Rule)
Failure of Election
In all cases, whether the PCE is filed by an Er or an LLO, the
There exists a failure of election in the following instances: Er shall not be considered a party thereto with a
concomitant right to oppose a PCE. The only purpose of the
1. Where the number of votes cast in a certification or proceeding is to determine which organization will
consent election is less than the majority of the represent the Ees in bargaining with the Er. The choice of
number of eligible voters and there is no material representative is the exclusive concern of the Ees.
challenged votes – In this case, the failure of election
shall not bar the filing of a motion for the immediate 4. RIGHTS OF LABOR ORGANIZATIONS
holding of another certification or consent election
within six (6) months from date of declaration of failure
Labor Organization
of election; and

It means any union or association of Ees which exists in

2. When there is a tie – The next election must be held
whole or in part for the purpose of collective bargaining or
within a period of ten (10) days from the last election in
of dealing with Ers concerning terms and conditions of
order to determine or break the tie.
employment. (Art. 219 (g), LC)

Run-off Election
Legitimate labor organization

A run-off election refers to an election between the labor

It means any labor organization duly registered with the
union receiving the two highest votes in a certification
DOLE, and includes any branch or local thereof. (Art. 219
election or consent election with three or more unions in
(h), LC)
contention, where such certification election or consent
election results in none of the contending unions receiving
Bargaining representative
the majority of the valid votes cast; provided, that the total
number of votes for all contending unions, if added is at
It means a legitimate labor organization or any officer or
least 50% of the number of valid votes cast. (Art. 268, LC)
agent of such organization, whether or not employed by the
Er. (Art. 219 (j), LC)
Requirements for a Run-Off Election

Company Union
1. A valid election took place because majority of the CBU
members voted;
It refers to any labor organization whose formation,
2. The election presented at least three choices,
function or administration has been assisted by any act
defined as unfair labor practice by the Labor Code. (Art. 219
e.g., Union One, Union Two, and No Union, meaning,
(i), LC)
there are at least two union “candidates;”

Modes of Creating a Labor Organization

3. Not one of the unions obtained the majority valid
votes;
1. Independent registration; (Art. 240, LC) and
4. The total number of votes for all the unions is at least
2. Chartering of local chapter/chartered local (Art.
50% of the votes cast; and
241, LC)
5. There is no unresolved challenge of voter or election
process. (Azucena, 2016)
Classification of Labor Organizations

NOTE: Thus, if “no union” garnered the majority vote, no

At the National Level
run-off elections may be held.
1. National Union/Federation;
2. Industry Union;
Choices in a run-off election
3. Trade Union Center; and
4. Company Union.
The unions receiving the highest and 2nd highest number of
the votes cast. (Sec. 2, Rule X, Book V, IRR)
At the Enterprise Level
1. Independent Union; and
NOTE:“No Union” is not a choice in the Run-off Election.
2. Chapter.

Re-Run Election
NOTE: A trade union center cannot create a chartered local.
(SMCEU-PTGWO v. SMPPEU-PDMP, G.R. No. 171153, 12 Sept.
There are three instances of Re-Run:
2007)

1. Failure of certification election declared by the

election officer;
2. Tie between two unions; or
3. Tie between a union and no union.

35 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
Disaffiliation of local union from the federation 2. To be certified as the exclusive representative of all the
Ees in an appropriate bargaining unit for purposes of
GR: A labor union may disaffiliate from the mother union to collective bargaining;
form an independent union only during the 60-day freedom
period immediately preceding the expiration of the CBA. 3. To be furnished by the Er with annual audited financial
statements, including the balance sheet and the profit
XPN: Even before the onset of the freedom period, and loss statement; (Right to Information)
disaffiliation may still be carried out, but such must be
effected by the majority of the union members in the 4. To own property, real or personal; (Property Rights)
bargaining unit.
5. To sue and be sued in its registered name; (Property
Effect of Revocation Rights)

CHARTERED LOCAL UNION 6. To undertake all other activities designed to benefit

INDEPENDENTLY the organization and its members; and (Art. 251, LC)
UNREGISTERED
REGISTERED (Property Rights)
How to Affiliate?
By application with the 7. To collect reasonable membership fees, union dues,
federation for the issuance assessments, fines, and other contributions. (Art.
By signing contract of 292(a), LC) (Right to Collect Union Dues)
of a charter certificate to be
affiliation.
submitted to the Bureau of
Labor Relations Rights and Conditions of Membership in Legitimate
Effect of Disaffiliation to the Union (local) Labor Organizations
Would cease to be an LLO
Would not affect its being and would no longer have The rights of union members may be summarized as
an LLO and therefore, it the legal personality and follows: (D-I-M-Pol)
would continue to have the rights and privileges
legal personality and to granted by law to LLO, a. Political right;
possess all rights and unless the local chapter is b. Right over Money matters;
privileges of LLO. covered by its duly c. Right to Information; and
registered CBA. d. Deliberative and decision-making right.
Effect of Disaffiliation to the CBA
An existing CBA would Political Right
continue to be valid as the The CBA would continue to
labor organization can be valid up to its expiration The member’s right to vote and be voted for, subject to
continue administering the date. lawful provisions on qualification and disqualifications.
CBA.
Entitlement to Union Dues after Disaffiliation Right over money matters
Union dues may no longer
Labor organization The member’s right:
be collected as there would
entitled to the union dues
no longer be any labor
and not the federation 1. Against excessive fees;
union that is allowed to
from which the labor 2. Against unauthorized collection of contributions or
collect such union dues
organization disaffiliated. disbursements;
from the Ees.
3. To require adequate records of income and expenses;
4. Of access to financial records;
Substitutionary Doctrine
5. Vote on officer’s compensation; and
6. Vote on proposed special assessment and be deducted
This doctrine holds that the Ees cannot revoke the validly
a special assessment only with the member’s written
executed collective bargaining contract with their Er by the
authorization.
simple expedient of changing their bargaining agent. The
new agent must respect the contract. The Ees, through their
Right to information
new bargaining agent, cannot renege on the collective
bargaining contract, except to negotiate with the
The member’s right to be informed about the:
management for the shortening thereof. (Elisco-Elirol Labor
Union, G.R. No. L-41955, 29 Dec. 1977)
1. Organization’s constitution and by-laws;
2. Collective bargaining agreement; and
RIGHTS OF LABOR ORGANIZATIONS
3. Labor laws.
A legitimate labor organization shall have the right:
Deliberative and decision-making right
1. To act as the representative of its members for the
The member’s right to participate in deliberations on major
purpose of collective bargaining; (Right of
policy questions and decide them by secret ballot.
Representation)

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a) CHECK OFF, ASSESSMENT, AND AGENCY FEES UNION DUES

CHECK OFF These are regular monthly contributions paid by the

members to the union in exchange for the benefits given to
A check-off is a method of deducting from the Ee’s pay at them by the CBA and to finance the activities of the union in
prescribed periods, any amount due for fees, fines, or representing the union.
assessments. It is a process or device whereby the Er, on
agreement with the union recognized as the proper AGENCY FEES
bargaining representative, or on prior authorization from
its Ees, deducts union dues and assessments from the It is an amount equivalent to union dues, which a non-union
latter’s wages and remits them directly to the union. member pays to the union because he benefits from the CBA
negotiated by the union.
Requirements for a Valid Check-Off
Requisites for Assessment of Agency Fees
1. Authorization by a written resolution of the majority of
all the members at a general membership meeting duly 1. The Ee is part of the bargaining unit;
called for the purpose; 2. He is not a member of the union; and
2. Secretary’s record of the minutes of said meeting; and 3. He partook of the benefits of the CBA.
3. Individual written authorizations for check-off duly
signed by the Ees concerned. Limitation on the Amount of Agency Fee

ASSESSMENTS The bargaining union cannot capriciously fix the amount of

agency fees it may collect from its non-members. Article
Payments used for a special purpose. Especially if required 248(e) of the LC expressly sets forth the limitation in fixing
only for a limited time. (Azucena, 2016) the amount of the agency fees, thus:
1. It should be reasonable in amount; and
Requisites to Collect Special Assessment 2. It should be equivalent to the dues and other fees
paid by members of the recognized collective
GR: No special assessments, attorney’s fees, negotiation bargaining agent.
fees, or any other extraordinary fees may be checked-off
from any amount due to an Ee unless there is: Union Dues vs. Agency Fees

1. Authorization by a written resolution of the majority UNION DUES AGENCY FEES

of all members at the general membership meeting From whom collected
duly called for that purpose; Collected by the union
from non-members
2. Secretary’s record of the minutes of the meeting; and Collected from union belonging to the same
members bargaining unit who
3. Individual written authorization for check-off duly receive the benefits under
signed by the Ee concerned. (Art. 250, LC; ABS-CBN the CBA.
Supervisors Ees Union Members v. ABS-CBN Corp., G.R. Need for Written Authorization
No. 106518, 11 Mar. 1999)
There must be an Can be assessed even
The authorization should specify the: individual written without the authorization
1. Amount; authorization by individual of the Ee concerned.
2. Purpose; and members.
3. Beneficiary of the deduction.
b) COLLECTIVE BARGAINING
XPNs:
a. For mandatory activities under the LC; Collective Bargaining Agreement (CBA)
b. For Agency Fees;
c. When non-members of the union avail of the Refers to a contract executed upon request of either the Er
benefits of the CBA: or the exclusive bargaining representative of the Ees –
incorporating the agreement reached after negotiations
i. Non-members may be assessed union dues with respect to wages, hours of work, and all other terms
equivalent to that paid by union members; and conditions of employment, including proposals for
and adjusting any grievances or questions under such
agreement.
ii. Only by board resolution approved by
majority of the members in general meeting
called for the purpose.

37 U N IV E R S I T Y O F S A N T O T O M A S
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(1) ECONOMIC TERMS AND CONDITIONS Zipper Clause

Term/Duration of a CBA It is a stipulation in a CBA indicating that issues that could

have been negotiated upon but not contained in the CBA
1. Economic and Non-Economic Aspect – may last for a cannot be raised for negotiation when the CBA is already in
maximum period of 3 years after the execution of the effect. All matters not included in the agreement shall be
CBA. deemed to have been raised and disposed of as if covered.
(SMTFM-UWP v. NLRC, G.R. No. 113856, 07 Sept. 1998)
2. Representation Aspect – may last for 5 years. It refers
to the identity and majority status of the union that Effectivity
negotiated the CBA as the exclusive bargaining
representative. The effectivity date depends on whether the CBA is the first
CBA or a renegotiated CBA.
60-Day Freedom Period (Representative Aspect)
1. First CBA - Effectivity date depends upon the
During the 60-day freedom period: agreement of the parties.

1. A labor union may disaffiliate from the mother union NOTE: The determining point is the date the parties
to form a local or independent union only during the agreed, not the date they signed.
60-day freedom period immediately preceding the
expiration of the five-year term of the CBA; 2. Renegotiated CBA - If within 6 months from the expiry
date of the old CBA, then the new CBA starts to take
2. Either party can serve a written notice to terminate or effect on the date following such expiry date. If beyond
modify agreement at least 60 days prior to the 6 months, the retroaction date will have to be agreed
expiration of the five-year term of the CBA; and upon by the parties.

3. A PCE may be filed. (3) DUTY TO BARGAIN COLLECTIVELY

60–Day Notice Period (Non-representative aspect) Jurisdictional Preconditions of Collective Bargaining:

The freedom period under Art. 265 & 268 is different from 1. Possession of the status of majority representation of
the other 60-day period mentioned in Art. 264. The latter the Ees’ representative;
speaks of the right of the parties to propose modifications 2. Proof of majority representation; and
to the existing CBA, as an exception to the rule that the CBA 3. A demand to bargain. (Associated Labor Unions (ALU)
cannot be modified during its lifetime, within 60 days prior v. Hon. Ferrer-Calleja, G.R No. 77282, 5 May 1989)
the expiration of its economic/non-economic aspect. This
60-day period does not and cannot refer to the Q: When should bargaining begin and when should it
representative status of the incumbent union since the end?
acquisition or loss of representative status is to be resolved
through CE. A: It begins when the 3 jurisdictional preconditions are
present. The collective bargaining should begin within the
(2) NON-ECONOMIC TERMS AND CONDITIONS 12 months following the determination and certification of
the Ees’ exclusive bargaining representative. The period is
Registration known as certification year.

Within 30 days from execution of CBA, the parties thereto (4) MANDATORY PROVISIONS IN THE COLLECTIVE
shall submit the agreement to the DOLE Regional Office BARGAINING AGREEMENT (CBA)
where the bargaining union is registered or where it
principally operates. Multi-Er collective bargaining Examples of matters considered as mandatory subjects of
agreements shall be filed with the Bureau. bargaining:

Effectivity of an Arbitral Award 1. Wages and other types of compensation including

merit increases;
CBA arbitral awards granted after six (6) months from the 2. Working hours and working days, including work
expiration of the last CBA, shall retroact to such time agreed shifts;
upon by both parties. Absent such an agreement, the award 3. Vacations and holidays;
shall retroact to the first day after the six-month period 4. Bonuses;
following the expiration of the last day of CBA. 5. Pensions and retirement plants;
6. Seniority;
In the absence of a CBA, the Secretary’s determination of the 7. Transfer;
date of retroactivity as part of his discretionary powers over 8. Lay-offs;
arbitral awards shall control. (Manila Electric Co. v. 9. Ee workloads;
Quisumbing, G.R. No. 127598, 22 Feb. 2000) 10. Work rules and regulations;
11. Rent of company houses; and

U N IV E R S I T Y O F S A N T O T O M A S 38
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 LABOR LAW AND SOCIAL LEGISLATION
12. Union security arrangements. 5. UNFAIR LABOR PRACTICES

Procedure in Collective Bargaining

Definition

When a party desires to negotiate an agreement:

ULP means any unfair labor practice as expressly defined by
the Labor Code. (Art. 219(k), LC)
1. It shall serve a written notice upon the other party
with a statement of proposals;
a) NATURE AND ASPECT
2. Reply by the other party shall be made within 10
calendar days with counter proposals;
Elements of ULP
3. In case of differences, either party may request for a
conference which must be held within 10 calendar
1. Existence of Er-Ee relationship between the offender
days from receipt of request;
and offended party; and
4. If not settled, NCMB may intervene and shall exert all
2. Act is expressly defined in the Code as ULP.
efforts to settle disputes amicably, and encourage the
parties to submit the dispute to a voluntary arbitrator;
ULP has two aspects, namely:
and
5. If not resolved, the parties may resort to any other
1. Civil; and
lawful means, either to settle the dispute or submit it
2. Criminal.
to a voluntary arbitrator.

Q: What is the condition precedent before criminal

NOTE: During the conciliation proceeding in the NCMB, the
prosecution of ULP may be made?
parties are prohibited from doing any act which may
disrupt or impede the early settlement of disputes. (Art.
A: There should be a finality of judgment in a labor case
261(d), LC)
finding that the respondent indeed committed ULP.

Ratification of the CBA

Difference between Civil and Criminal aspect of ULP

GR: The agreement negotiated by the Ees' EBR should be

CIVIL ASPECT CRIMINAL ASPECT
ratified or approved by the majority of all the workers in the
Persons liable
bargaining unit. The proper ratifying group is not the
Officers and agents who
majority union but the majority of all the workers in the Officers and agents of Er or
participated or authorized
bargaining unit represented by the negotiation. labor organizations
the act
Jurisdiction
XPN: Ratification of the CBA by the Ees is not needed when
the CBA is a product of an arbitral award by a proper RTC or MTC, as the case
government authority (Art. 278(g) LC) or a voluntary Labor Arbiter may be. (Concurrent
arbitrator. (Art. 275, LC) jurisdiction)
Prescriptive period
Lock, Stock, and Barrel Rule One (1) year from accrual One (1) year from accrual
of the ULP act of the ULP act
When the Er refuses to submit any counter-proposal, the Er Quantum of proof
had lost its right to bargain the terms and conditions of Substantial evidence Beyond reasonable doubt
employment. Consequently, all the terms and conditions of
the CBA as proposed by the SEBA are deemed approved and b) BY EMPLOYERS
accepted lock, stock, and barrel by the Er. (Kiok Luy v. NLRC
G.R. No. L-54334, 22 Jan. 1986) The following are the ULP committed by Ers:

Hold-over Principle a. Interference, restraint, or coercion;

b. Yellow dog contract;
It shall be the duty of both parties to keep the status quo and c. Contracting out of services;
to continue in full force and effect the terms and conditions d. Company unionism;
of the existing agreement during the 60-day period and/or e. Discrimination for or against union membership;
until a new agreement is reached by the parties. Despite the f. Discrimination because of testimony;
lapse of the formal effectivity of the CBA, the law still g. Violation of duty to bargain;
considers the same as continuing in force and effect until a h. Paid negotiation; and
new CBA shall have been validly executed. (MERALCO v. i. Gross violation of the CBA.
Hon. Sec. of Labor, G.R. No. 127598, 1 Aug. 2000)
NOTE: The enumeration of ULP under Art. 259 is not
exclusive.

INTERFERENCE, RESTRAINT, OR COERCION

To interfere with, restrain, or coerce Ees in the exercise of

their right to self-organization. (Art. 259(a), LC)

39 U N IV E R S I T Y O F S A N T O T O M A S
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YELLOW DOG CONTRACT VIOLATION OF DUTY TO BARGAIN

A Yellow Dog Condition is a promise exacted from workers Four Forms of ULP in bargaining: (F-E-B-G)
as a condition of employment that they are not to belong to,
or attempts to foster, a union during their period of 1. Failure or refusal to meet and convene;
employment. 2. Evading mandatory subjects of bargaining;
Requisites of a Yellow Dog Condition (R-P-P) 3. Bad faith in bargaining; and
4. Gross violation of the CBA.
1. A Representation by the Ee that he is not a member
of a labor union; Effect of Refusal of Management to Give Counter-
2. A Promise by the Ee not to join a labor union; and Proposals to the Union’s Demands
3. A Promise by the Ee that, upon, joining a labor
union, he will quit his employment. The failure of the Er to submit its counter-proposals to the
demands of the bargaining union does not, by itself,
CONTRACTING OUT constitute refusal to bargain. (Philippine Marine Radio
Officers Association v. CIR, G.R. Nos. L-10095 & L-10115, 31
To contract out services or functions being performed by Oct. 1957)
union members when such will interfere with, restrain, or
coerce Ees in the exercise of their right to self-organization. However, when the Er refuses to submit an answer or reply
(Art. 259(c), LC) to the written bargaining proposals of the certified
bargaining union, ULP is committed.
Runaway shop
Deadlock
Refers to business relocation animated by anti-union
animus. It is a plant moved to a new location in order to It is synonymous with impasse or a standstill which
discriminate against Ees at the old plant because of their presupposes reasonable effort at good faith bargaining but
union activities. despite noble intentions, does not conclude an agreement
between the parties.
COMPANY UNIONISM
Remedies In Case of Deadlock
Forms of company domination:
The parties, during renegotiation, may:
1. Initiation of the company union idea by:
a. Outright formation by the Er or his 1. Call upon the NCMB to intervene for the purpose of
representatives; or conducting conciliation or preventive mediation;
b. Managerially motivated formation of union; 2. Refer the matter for voluntary arbitration or
2. Financial support to the union; compulsory arbitration; or
3. Er encouragement and assistance; and 3. Declare a strike or lockout upon compliance with
4. Supervisory assistance. the legal requirements.

DISCRIMINATION FOR OR AGAINST NOTE: This remedy is a remedy of last resort.

UNION MEMBERSHIP
Bad Faith in Bargaining
To discriminate in regard to wages, hours of work, and
other terms and conditions of employment in order to 1. Surface Bargaining;
encourage or discourage membership in any labor 2. Blue Sky Bargaining; and
organization. (Art. 259(e), LC) 3. Boulwarism.

DISCRIMINATION BECAUSE OF TESTIMONY Surface Bargaining

Dismissing or prejudicing an Ee who is about to give or has It is defined as "going through the motions of negotiating"
given testimony under the Labor Code. without any legal intent to reach an agreement. It is also
called “shadow boxing” or “apparent bargaining.”
ULP also applies to refusal to testify
Blue Sky Bargaining
The article also applies to refusal to testify because it is
analogous to giving of testimony. (Mabeza v. NLRC, G.R. No. It is defined as making exaggerated or unreasonable
118506, 18 Apr. 1997) proposals. It connotes demands from the union which the
Er has no capacity to give. Whether or not the union is
engaged in blue-sky bargaining is determined by the
evidence presented by the union as to its economic
demands. Thus, if the union requires exaggerated or
unreasonable economic demands, then it is guilty of ULP.

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 LABOR LAW AND SOCIAL LEGISLATION
(Standard Chartered Bank v. Confessor, G.R. No. 114974, 16 UNION-INDUCED DISCRIMINATION
Jun. 2004)
Arbitrary use of Union Security Clause
Boulwarism
Unions are not entitled to arbitrarily exclude qualified
It is a violation of good faith in bargaining. It includes the applicants for membership, and a closed-shop provision
failure to execute the CBA. would not justify the Er in discharging, or a union in
insisting upon the discharge of an Ee whom the union thus
It is the tactic of making a "take-it-or-leave-it" offer in a refuses to admit to membership, without any reasonable
negotiation, with no further concessions or discussion. It is ground therefor. (Salunga v. CIR, G.R. No. L-22456, 27 Sept.
also known as the “Take-It-or-Leave-It Bargaining.” 1967)
Gross Violation of the CBA
REFUSAL TO BARGAIN
The allegations in the complaint should show prima facie
the concurrence of two things, namely: It is the act of a union in refusing or violating its duty to
bargain collectively by entering negotiations with a fixed
1. gross violation of the CBA, as opposed to simple purpose of not reaching an agreement or signing a contract.
violations of the CBA which are only grievance
matters; and FEATHERBEDDING OR MAKE-WORK ARRANGEMENTS
2. the violation pertains to the economic provisions of
the CBA. (Silva v. NLRC, G.R. No. 110226, June 1997) To cause or attempt to cause an Er to pay or deliver or agree
to pay or deliver any money or other things for value, in the
PAID NEGOTIATION nature of an exaction, for services which are not performed
or not to be performed, including the demand for fee for
The act of Er of paying negotiation or attorney’s fees to the union negotiations. (Art. 260 (d), LC)
union or its officers as part of the settlement of any issue in
collective bargaining or any other dispute. Featherbedding

Sweetheart Contract refers to an Ee practice which creates or spreads

employment by unnecessarily maintaining or increasing
It is when a labor organization asks for or accepts the number of Ees used, or the amount of time consumed, to
negotiations or attorney’s fees from Ers as part of the work on a particular job.
settlement of any issue in CB or any other dispute. The
resulting CBA is considered as a “sweetheart contract,” CBA DEAL WITH EMPLOYER
which is a CBA that does not substantially improve the Ees’
wages and benefits and whose benefits are far below than Accepting for or accepting some “fee” from the Er as part of
those provided by law. It is an incomplete or inadequate CBA or dispute settlement.
CBA.
GROSS VIOLATION OF THE CBA
c) BY ORGANIZATIONS
It is the flagrant and/or malicious refusal by a party to
ULP Committed by Labor Organizations comply with the economic provisions of the CBA.

a. Restraint or coercion; Reliefs available in ULP cases (Dis-Cease-O-A)

b. Union-induced discrimination;
c. Refusal to bargain; 1. Cease and Desist Order
d. Featherbedding or Make-Work Arrangements; 2. Affirmative Order
e. CBA deal with Er; and 3. Order to Bargain; or Mandated CBA
f. Gross violation of CBA. 4. Disestablishment of the Company-Dominated Union

RESTRAINT OR COERCION 6. PEACEFUL CONCERTED ACTIVITIES

Interference by a Labor Organization is not ULP

a) STRIKES (VALID vs. ILLEGAL)

A labor organization can interfere with Ees’ right to self-

Strike
organization as long as it does not amount to restraint or
coercion. Interfering in the exercise of right to organize is
It means any temporary stoppage of work by the concerted
itself a function of self-organizing. (Azucena, 2016)
action of Ees as a result of an industrial or labor dispute.
(Sec. 1(uu), Rule I, Book V, IRR)

41 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
Grounds for a valid strike Cooling-off Periods Provided by Law

The law recognizes two (2) grounds for the valid exercise of a. In cases of CBD, the cooling-off period is 30 days;
the right to strike or lockout, namely: b. In cases of ULP, the period shall be 15 days.
1. Collective Bargaining Deadlock (CBD); and
2. Unfair Labor Practices (ULP) - Includes flagrant LEGAL STRIKE vs. ILLEGAL STRIKE
and/or malicious refusal to comply with the economic
provisions of the CBA. LEGAL STRIKE ILLEGAL STRIKE
One staged for a purpose
One called for a valid
Summarized Requirements of a valid strike not recognized by law, or if
purpose and conducted
for a valid purpose,
through means allowed by
The requirements for a valid strike are as follows: conducted through means
law.
not sanctioned by law.
a. Filing of Notice of Strike;
b. Observance of the cooling-off period: Tests in Determining the Legality of Strike

1. 30 days for bargaining deadlock, and The following must concur:

2. 15 days for ULP;
1. Purpose test – The strike must be due to either
c. Notice of strike vote meeting within 24 hours bargaining deadlock and/or the ULP.
before the intended vote;
d. Strike vote; 2. Compliance with the procedural and substantive
e. Report of the strike vote; and requirements of the law.
f. Observance of the 7-day waiting period.
3. Means employed test – It states that a strike may be
Declaration of a Strike legal at its inception but eventually be declared illegal
if the strike is accompanied by violence which is
The following may declare a strike or lockout: widespread, pervasive, and adopted as a matter of
policy and not mere violence which is sporadic and
1. Any certified or duly recognized bargaining which normally occurs in a strike area.
representative may declare a strike in cases of
bargaining deadlocks and ULP. The Er may declare a Ees who staged an illegal strike are not entitled to
lockout in the same cases. backwages

2. In the absence of a certified or duly recognized Contemplating two causes for the dismissal of an Ee — (a)
bargaining representative, any LLO in the unlawful lockout, and (b) participation in an illegal strike —
establishment may declare a strike but only on Art 279(a) authorizes the award of full backwages only
grounds of ULP. (Sec. 6, Rule XXII, Book V, IRR as when the termination of employment is a consequence of an
amended by D.O. 40-03) unlawful lockout.

Grievance With respect to backwages, the principle of “fair day’s wage

for a fair day’s labor” remains as the basic factor in
Any question by either the Er or the union regarding the determining the award thereof. If there is no work
interpretation or application of the CBA or company performed by the Ee, there can be no wage or pay unless, of
personnel policies or any claim by either party that the course, the laborer was able, willing, and ready to work but
other party is violating any provision of the CBA, or was illegally locked out, suspended, dismissed or otherwise
company personnel policies. illegally prevented from working. However, for this
exception to apply, it is required that the strike be legal.
Grievance machinery (Olisa v. Escario, G.R. No. 160302, 27 Sept. 2010)

The mechanism for the adjustment and resolution of

grievances arising from the interpretation or
implementation of a CBA and those arising from the
interpretation or enforcement of company personnel
policies. It is part of the continuing process of CB.

Cases falling under the jurisdiction of the Grievance

Machinery

Any grievance arising from:

1. The interpretation or implementation of the CBA; and

2. The interpretation or enforcement of company
personnel policies.

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 LABOR LAW AND SOCIAL LEGISLATION
LIABILITY OF UNION OFFICERS AND MEMBERS FOR Entitlement of strikers to their backwages or strike
ILLEGAL STRIKE AND ILLEGAL ACTS DURING STRIKE duration pay

Effects on Union Officer vs. Ordinary Worker when they GR: Strikers are not entitled to their backwages or strike
knowingly participated in illegal strike and when they duration pay even if such strike was legal.
knowingly participated in the illegal acts during strike
XPNs:
UNION OFFICER ORDINARY WORKER
Knowingly participated in illegal strike 1. Where the strikers voluntarily and unconditionally
Cannot be terminated offered to return to work, but the Er refused to
accept the offer – Ees are entitled to backwages
NOTE: The LC protects from the date their offer was made;
ordinary, rank-and-file 2. When there is a return-to-work order and the Ees
May be declared to have
union members who are discriminated against other Ees, workers are
lost his employment
participated in such a entitled to backwages from the date of
status.
strike from losing their discrimination;
jobs, provided that they did 3. In case of a ULP strike, in the discretion of the
not commit illegal acts authority deciding the case; and
during the strike. 4. When the Ees were illegally locked out and thus,
Knowingly participating in the commission of illegal compelled them to stage a strike.
acts during strike
May be terminated May be terminated b) PICKETING

Rule on reinstatement of striking workers Picketing

Striking Ees are entitled to reinstatement, regardless of It is a concerted activity of workers consisting in peacefully
whether or not the strike was the consequence of the Er’s marching to and from, before an establishment involved in
ULP because while out on strike, the strikers are not a labor dispute, generally accompanied by the carrying and
considered to have abandoned their employment, but display of signs, placards and banners intended to inform
rather have only ceased from their labor. The declaration of the public about the dispute. (Chan, 2017)
a strike is not a renunciation of employment relation.
Requisites for Lawful Picketing
Persons not entitled to reinstatement
1. It should be peacefully carried out;
1. Union officers who knowingly participate in the illegal 2. There should be no act of violence, coercion, or
strike; and intimidation;
2. Any striker or union who knowingly participates in the 3. The ingress to (entrance) or egress from (exit) the
commission of illegal acts during the strike. company premises should not be obstructed; and
4. Public thoroughfares should not be impeded.
Ees who abandoned a legal strike but were refused
reinstatement can be awarded backwages Strike vs. Picketing

Provided the following requisites are present: STRIKE PICKETING

To march to and from the
1. The strike was legal; To withhold or to stop Er’s premises, usually
work by concerted action accompanied by the
2. There was an unconditional offer to return to work as of Ees because of an display of placards and
when the strikers manifested their willingness to industrial or labor dispute. other signs making known
abide by the CIR back-to-work order and even sought The work stoppage may be the facts involved in a labor
the aid of competent authorities to affect their return; accompanied by picketing dispute. It is a strike
and by the striking Ees outside activity separate and
of the company compound. different from actual
3. The strikers were refused reinstatement such as when stoppage of work.
they have not been re-admitted to their former Focuses on publicizing the
position. (Philippine Marine Officers' Guild v. Compañia labor dispute and its
Maritima et al., G.R. Nos. L-20662 & L-20663, 27 Mar. Focuses on stoppage of incidents to inform the
1971) work. public of what Is
happening in the company
Separation pay in lieu of reinstatement in strike cases struck against.

In strike cases, the award of separation pay in lieu of

reinstatement is proper only when the strikers did not
participate in the commission of illegal acts in the course
thereof.

43 U N IV E R S I T Y O F S A N T O T O M A S
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c) LOCKOUTS Requisites for Assumption of Jurisdiction

It means any temporary refusal of an Er to furnish work as The SOLE may assume jurisdiction over the dispute and
a result of an industrial or labor dispute. (Art. 219(p), LC) decide it, or certify the same to the NLRC for compulsory
arbitration, provided, that any of the following conditions is
Elements of Lockout present:

1. Temporary refusal to furnish work by the Er; and 1. Both parties have requested the SOLE to assume
2. Occasioned by an industrial or labor dispute. (Chan, jurisdiction over the labor dispute; or
2017) 2. After a conference called by the SOLE on the
propriety of its issuance, motu proprio or upon a
NOTE: The lockout must be for a lawful purpose and carried request or petition by either parties to the labor
out through lawful means. A lockout is unlawful where it is dispute. (Sec. 15, Rule XXII, Book V, IRR)
declared in order to defeat organizational and bargaining
rights of Ees. (Dingsalan v. NLU, G.R. No. L-14183, 28 Nov. Effect of Assumption
1959)
The assumption or certification by the SOLE has the effect
Grounds for lockout of automatically enjoining the intended or impending strike
or lockout as specified in the assumption or certification
1. Collective bargaining deadlock; or order.
2. Unfair Labor Practice act. (D.O. No. 40-03, as
amended by D.O. No. 40A-03) Effect of assumption if a strike or lockout has already
taken place
NOTE: No strike or lockout may be declared on grounds
involving inter-union and intra-union dispute or without If a strike or lockout has already taken place at the time of
first having filed a notice of strike or lockout or without the assumption or certification:
necessary strike or lockout vote having been obtained and
reported to the Board. (Sec. 5, Rule XXII, Book V, IRR) 1. The striking or locked Ees shall immediately return to
work; and
Mandatory procedural requirements 2. The Er shall immediately resume operations and
readmit all workers under the same terms and
The requirements for a valid lockout are as follows: conditions prevailing before the strike or lockout. (Art.
278(g), LC)
a. Filing of Notice of Lockout by the Er to the NCMB;

b. Observance of the cooling-off period: E. TELECOMMUTING ACT (R.A. No. 11165)

1. 30 days for bargaining deadlock, and
2. 15 days for ULP;

c. Notice of lockout vote meeting within 24 ours 1. DEFINITION (Sec. 3)

before the intended vote;
d. Lockout vote; Telecommuting refers to a work arrangement that allows
e. Report of the lockout vote; and an employee in the private sector to work from an
f. Observance of the 7-day waiting period. alternative workplace with the use of telecommunication
and/or computer technologies. (Sec. 3, R.A. No. 11165)
d) ASSUMPTION OF JURISDICTION BY THE DOLE
SECRETARY Telecommuting Agreement

When DOLE Secretary may assume or certify a labor The Er and Ees shall adhere to and be guided by the
dispute mutually agreed policy or telecommuting agreement, which
stipulates for the following provisions, including but not
Art. 278(g) of the LC provides that when in the opinion of limited to:
the SOLE, the there exists a labor dispute causing or will
likely cause a strike or lockout in an industry indispensable 1. Eligibility;
to the national interest, he is empowered to either: 2. Applicable code of conduct and performance
evaluation and assessment;
1. Assume jurisdiction over the labor dispute and decide 3. Appropriate alternative workplace/s;
it himself; or 4. Use and cost of equipment;
2. Certify it to the NLRC for compulsory arbitration, in 5. Work days and/or hours;
which case, it will be the NLRC which shall hear and 6. Conditions of employment, compensation, and
decide it. benefits particularly those unique to
telecommuting Ees;
7. Non-diminution of benefits;
8. Occupational safety and health;

U N IV E R S I T Y O F S A N T O T O M A S 44
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9. Observance of data privacy policy; 6. Have the same collective rights as the workers at the
10. Dispute settlement; and Er's premises, including access to safety and health
11. Termination or change of work arrangement. (Sec. services when necessary, and shall not be barred from
4, R.A. No. 11165) communicating with worker's representatives. (Sec. 4,
D.O. 202-19)
Termination of Telecommuting Arrangement
The Er shall also ensure that measures are taken to prevent
The Er or Ees may terminate or change the telecommuting the telecommuting Ee from being isolated from the rest of
work arrangement, in accordance with the telecommuting the working community in the company by giving the
policy or agreement, without prejudice to employment telecommuting Ee the opportunity to meet with colleagues
relationship and working conditions of the Ee, at no cost to on a regular basis and allowing access to the regular
the latter. workplace and company information.

2. TELECOMMUTING PROGRAM (Sec. 4)

An Er in the private sector may offer a telecommuting

program to its Es on a voluntary basis or as a result of
collective bargaining, if any, and upon such terms and
conditions as they may mutually agree upon. (Sec. 3, D.O.
202-19)

NOTE: Such terms and conditions shall not be less than the
minimum labor standards set by law, and shall include
compensable work hours, minimum number of work hours,
overtime, rest days, entitlement to leave benefits, social
welfare benefits, and security of tenure.

3. FAIR TREATMENT (Sec. 5)

Fair Treatment

The Er shall ensure that telecommuting Ees are given the

same treatment as that of comparable Ees working at the
Er's premises. All telecommuting Ees shall be covered by
the same set of applicable rules and existing CBA, if any.
They shall also:

1. Receive a rate of pay, including overtime and night shift

differential, and other similar monetary benefits not
lower than those provided in applicable laws, and/or
CBA;

2. Have the right to rest days, regular holidays, and special

nonworking days;

3. Have the same or equivalent workload and

performance standards as those of comparable
workers at the Er's premises; provided that the parties
may mutually agree to different performance standards
that may be more appropriate given the location of the
Ee is not at the premises of the Er;

4. Without additional cost, have the same access to

training and career development opportunities as
those of comparable workers at the Er's premises, and
be subject to the same appraisal policies covering these
workers, including the qualification provided on the
preceding item;

5. Without additional cost, receive appropriate training

on the technical equipment at their disposal, and the
characteristics and conditions of telecommuting; and

45 U N IV E R S I T Y O F S A N T O T O M A S
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driver’s compensation. Under this system, the owner or
IV. POST-EMPLOYMENT operator exercises control and supervision over the driver.
(Villamaria v. CA and Bustamante, G.R. No. 165881, 19 Apr.
2006)

The boundary-hulog contract between the jeepney owner

A. EMPLOYER-EMPLOYEE RELATIONSHIP and the jeepney driver does not negate the Er-Ee
relationship between them. (Azucena, 2016)

Existence of an Employment Relationship 2. KINDS OF EMPLOYMENT

Employment relationship is determined by law and not by

1. As to tenure
contract. (Insular Life Assurance Co. Ltd. v. NLRC, G.R. No.
a. Permanent – who is appointed to a job for an
119930, 12 Mar. 1998)
undefined and indefinite period.

1. TESTS TO DETERMINE EMPLOYER-EMPLOYEE Also referred to as “regular” Ee

RELATIONSHIP
One who is doing a job which is “necessary or
Four-Fold Test (Select(a)-Wag-Dis-Co) desirable” to the usual business of the Er

Factors determining the existence of an Er-Ee relationship: May be terminated only because of “just” or an
“authorized” cause according to Art. 294
1. Selection and engagement of the Ee;
2. Payment of wages; b. Temporary/Probationary – one who stays on the
3. Power of dismissal; and job for a defined or pre-agreed period. (Azucena,
4. Power of control, or the Control Test. (Azucena, 2016) 2016)

NOTE: It is the so-called “control test” that is the most 2. As to the Labor Code Book VI
important element. Absent the power to control the Ee a. Regular
with respect to the means and methods by which his b. Project
work was to be accomplished, there is no Er-Ee c. Seasonal
relationship between the parties. (Continental Marble d. Casual
Corp., et.al v. NLRC, G.R. No. 43825, 09 May 1988) e. Probationary
f. Fixed-term
Economic Dependence (Two-Tiered Test)
3. On the basis of salary component
This two-tiered test provides us with a framework of a. Monthly-paid – where the salary covers all the
analysis, which would take into consideration the totality of days of the month including the rest days and
circumstances surrounding the true nature of the holidays;
relationship between the parties. This is especially
appropriate in this case where there is no written b. Daily-paid – salary only covers the day or days
agreement or terms of reference to base the relationship on worked
and due to the complexity of the relationship based on the
various positions and responsibilities given to the worker NOTE: Daily-paid or monthly-paid refers to the
over the period of the latter’s employment. (Francisco v. inclusiveness of the salary, not the frequency or intervals of
NLRC, G.R. No. 170087, 31 Aug. 2006) payments.

Elements a) REGULAR

1. The putative Er’s power to control the Ee with respect Types of Regular Employment
to the means and methods by which the work is to be
accomplished (Four-fold Test); and 1. As to nature of work – An employment shall be
2. The underlying economic realities of the activity or deemed to be regular where the Ee has been engaged
relationship. (Economic Reality Test). to perform activities which are usually necessary or
desirable in the usual business or trade of the Er, the
Boundary-Hulog System provisions of written agreements to the contrary
notwithstanding and regardless of the oral
Under the boundary-hulog scheme, a dual juridical agreements of the parties. (Sec. 5(a), Rule I, Book VI,
relationship was created: that of Er-Ee and vendor-vendee. IRR)
The boundary system is a scheme by an owner or operator
engaged in transporting passengers as a common carrier to 2. As to length of service – Any Ee who has rendered at
primarily govern the compensation of the driver, that is, the least one (1) year of service, whether such service is
latter’s daily earnings are remitted to the owner/operator continuous or broken, shall be considered a regular
less the excess of the boundary which represents the Ee with respect to the activity in which he is

U N IV E R S I T Y O F S A N T O T O M A S 46
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 LABOR LAW AND SOCIAL LEGISLATION
employed, and his employment shall continue while Casual vs. Project Employee
such activity exists. (Sec. 5(b), Rule I, Book VI, IRR)
CASUAL PROJECT
Tests to Determine Regular Employment Employed for a specific
Engaged to perform a job, project or undertaking
1. The primary standard of determining regular work or service which is where the completion or
employment is the reasonable connection between the incidental to the business termination of which is
particular activity performed by the Ee to the usual of the Er and the definite determined at the time of
trade or business of the Er. The test is whether the period of his employment his engagement.
former is usually necessary or desirable in the usual is made known to him at
business or trade of the Er. (De Leon v. NLRC, G.R. No. the time of his His work need not be
70705, 21 Aug. 1989) engagement. incidental to the business
of the Er
NOTE: The connection can be determined by His continued His employment may
considering the nature of the work performed and its employment after the exceed one year without
relation to the scheme of the particular business or lapse one year makes him necessarily making him a
trade in its entirety. (Highway Copra Traders v. NLRC, a regular Ee. regular Ee.
G.R. No. 108889, 30 July 1988) Job is coterminous with a
specific project or phase
2. Also, the performance of a job for at least a year is thereof. It is required that
sufficient evidence of the job’s necessity if not No termination report a termination report be
indispensability to the business. This is the rule even if required. submitted at the nearest
its performance is not continuous and merely employment office upon
intermittent. The employment is considered regular, completion of the project
but only with respect to such activity and while such or phase.
activity exists. (Universal Robina Corp. v. Catapang, G.R.
No. 164736, 14 Oct. 2005) c) PROBATIONARY

Seafarers are Not Regular Ees Probation

Seafarers cannot be considered as regular Ees. The contract the period during which the Er may determine if the Ee is
which they sign every time they are hired governs their qualified for possible inclusion in the regular force. (Holiday
employment. Their employment is terminated when the Inn Manila v. NLRC, G.R. No. 109114, 14 Sept. 1993)
contract expires. Their employment is fixed for a certain
period. (Ravago v. Esso Eastern Maritime Ltd., G.R. No. Probationary Employment
158324, 15 Mar. 2005)
Employment where the Ee, upon his engagement:
b) CASUAL
1. Is made to undergo a trial period;
Casual employment 2. During which the Er determines his fitness to
qualify for regular employment; and
It is an employment where the Ee is engaged in an activity 3. Based on reasonable standards made known to the
which is not usually necessary or desirable in the usual Ee at the time of engagement. (Sec. 6, Book VI, Rule
business or trade of the Er, provided, such employment is I, IRR)
neither Project nor Seasonal. (Art. 295, LC) He performs
only an incidental job in relation to the principal activity of Requisites for a Valid Probationary Employment
the Er.
1. There must be a written contract;
Casual Ee becoming a Regular Ee 2. The contract must spell out that the Ee will go through
a probationary period of employment for a specified
If he has rendered at least one (1) year of service, whether number of months;
such service is continuous or broken, he is considered as 3. The contract must specify reasonable standards on the
regular Ee with respect to the activity in which he is basis of which his performance will be evaluated;
employed, and his employment shall continue while such 4. There must be an assessment of the performance of the
activity exists. probationary Ee in relation to the standards; and
5. The result of the assessment must be communicated to
A casual Ee is only casual for one (1) year, and it is the the Ee.
passage of time that gives him a regular status. (KASAMMA-
CCO v. CA, G.R. No. 159828, 19 Apr. 2006) Rules on Probationary Employment

1. Er shall make known to the Ee at the time he is hired,

the standards by which he will qualify as a regular Ee;

47 U N IV E R S I T Y O F S A N T O T O M A S
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NOTE: Where no standards are made known to the Ee Instances When a probationary Ee is deemed to be a
at that time, he shall be deemed a regular Ee. (Sec. 6(d), Regular Ee
Rule VIII-A, Book VI, IRR)
1. If he is allowed to work after a probationary period.
2. Probationary employment must have been expressly (Art. 295, LC)
agreed upon; without such explicit agreement, the 2. If no standards, under which he will qualify as a regular
employment is considered regular; Ee, are made known to him at the time of his
engagement. (Rule I, Book VI, IRR)
3. An Ee allowed to continue work after the probationary
period shall be considered a regular Ee; Grounds for Terminating Probationary Employment (J-
A-FaR)
4. During the probationary period, the Ee enjoys security
of tenure; his services can only be terminated for just or 1. Just causes
authorized causes. 2. Authorized causes; or
3. When he Fails to qualify as a Regular Ee in accordance
Period of Probationary Employment with reasonable standards made known by the Er to the
Ee at the time of his engagement. (ICMC v. NLRC, G.R. No.
GR: It shall not exceed six (6) months from the date of the 72222, 30 Jan. 1989; Art. 295, LC)
commencement of employment.
d) PROJECT
XPNs:
Project
1. Covered by an Apprenticeship or Learnership
agreement stipulating a different period (Art. 296, A "project" has reference to a particular job or undertaking
LC); or that may or may not be within the regular or usual business
of the Er. In either case, the project must be distinct,
2. When the parties to an employment contract may separate, and identifiable from the main business of the Er,
agree otherwise, such as: and its duration must be determined or determinable. (PAL
v. NLRC, G.R. No. 125792, 09 Nov. 1998)
a. When the same is established by company
policy; or Project Employment
b. When the same is required by the nature of
work to be performed by the Ee. (Busier v. Project employment is employment that has been fixed for:
Leogardo, Jr., G.R. No. L-63316, 31 July 1984)
1. Specific undertaking – a specific project or
e.g., The probationary period set for undertaking the completion; or
professors, instructors and teachers is three 2. Time-bound – termination of which has been
consecutive years of satisfactory service determined at the time of engagement of the Ee. (Sec.
pursuant to DOLE Manual of Regulations for 5(a), Book VI, Rule I, IRR)
Private Schools.
Requisites in Determining Whether an Ee is a Project Ee
NOTE: By voluntarily agreeing to such an
extension, the Ee waived any benefit attaching to 1. Designation of named Ees as “Project Ees”;
the completion of the period if he still failed to make 2. The project Ee was assigned to carry out a specific
the grade during the period of extension. project or undertaking;
(Mariwasa Mfg. Inc. v. Hon. Leogardo, G.R. No. 74246, 3. The duration and scope of which were specified at the
26 Jan. 1989) time the Ee was engaged for that project (Imbuido v.
NLRC, G.R. No. 114734, 31 May 2000);
3. The Er gives the Ee a second chance to pass the 4. The Ee must have been dismissed every after
standards set. (Mariwasa Manufacturing, Inc. v. completion of his project or phase; and
Leogardo, Jr., G.R. No. 74246, 26 Jan. 1989) 5. Report to the DOLE of Ee’s dismissal on account of
completion of contract. (D.O. 19-1993)
NOTE: Period of probation shall be reckoned from the date
the Ee started working. (Sec. 6(b), Book VI, Rule I, IRR) Requisites to Acquire Regular Ee Status of Project Ee
Probationary Ees may be dismissed for cause before end of
the probationary period. The following must concur to acquire regular Ee status:

After the lapse of the probationary period 6 months, Ee 1. There is a continuous rehiring of project Ee’s even
becomes regular. after cessation of a project; and
2. The tasks performed by the alleged “project Ee” are
vital, necessary, and indispensable to the usual
business or trade of the Er. (D.M. Consunji, Inc. v.
JAMIN, G.R. No. 192514, 18 Apr. 2012)

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The length of time during which the Ee was continuously Brent Doctrine
rehired is not controlling, but merely serves as a badge of
regular employment. Art. 295 of the LC does not prohibit an employment contract
with a fixed period, provided it is entered into by the parties
“Day certain” rule without any force, duress, or improper pressure being
brought to bear upon either party, particularly the Ee and
It states that a project employment that ends on a certain absent any other circumstances vitiating consent; or where
date does not end on an exact date but upon the completion it satisfactorily appears that the Er and Ee dealt with each
of the project. other on more or less equal terms with no moral dominance
whatever being exercised by the former over the latter.
Entitlement to Separation Pay Such employment for a defined period is allowed even
where the duties of the Ee consist of activities usually
GR: Project Ees are not entitled to separation pay if their necessary or desirable in the usual business of the Er.
services are terminated as a result of the completion of
project. There can of course be no quarrel with the proposition that
where, from the circumstances, it is apparent that periods
XPN: If the projects they are working on have not yet been have been imposed to preclude acquisition of tenurial
completed when their services are terminated; project Ees security by the Ee, they should be struck down or
also enjoy security of tenure during the limited time of their disregarded as contrary to public policy, morals, etc. (Brent
employment. (De Ocampo v. NLRC, G.R. No. 81077, 06 June School, Inc. v. Zamora, G.R. No. L-48494, 5 Feb. 1990)
1990)
Overseas Seafarers are Contractuals
e) SEASONAL
The employment of overseas seafarers is governed by the
Seasonal employment POEA Standard Employment Contract (POEA-SEC) for
Filipino Seamen. Their employment is governed by the
Employment where the job, work, or service to be contracts they sign every time they are rehired, and their
performed is seasonal in nature and the employment is for employment is terminated when the contract expires. It is
the duration of the season. (Sec. 5(a), Book VI, Rule I, IRR) an accepted maritime industry practice that employment of
seafarers is for a fixed period only.
An employment arrangement where an Ee is engaged to
work during a particular season on an activity that is usually g) FLOATING STATUS
necessary or desirable in the usual business or trade of the
Er. An employment is not deemed terminated when:

Instances When a Seasonal Ee is deemed to be a Regular 1. There is a bona fide suspension of the operation of
Ee a business or undertaking for a period not
exceeding 6 months; or,
During off-season, the relationship of Er-Ee is not severed; 2. The fulfilment by the Ee of a military or civic duty.
the Seasonal Ee is merely considered on LOA without pay. (Art. 301, LC)
Seasonal workers who are repeatedly engaged from season
to season performing the same tasks are deemed to have During this period, the Ee is considered on “floating status,”
acquired regular employment. (Hacienda Fatima v. National which is also known as temporary lay-off, temporary off-
Federation of Sugarcane Workers-Food and General Trade, detail, or temporary retrenchment.
G.R. No. 149440, 28 Jan. 2003)
Since the lay-off is only temporary, the employment status
f) FIXED-TERM of the Ee is not deemed terminated, but merely suspended.
(Dela Cruz v. NLRC, G.R. No. 119536, 17 Feb. 1997)
Term Employment
Floating Status
A contract of employment for a definite period terminates
by its own terms at the end of such period. (Brent School v. a) DOLE D.O. 174-17 (Manpower Services)
Zamora, G.R. No. L-48494, 05 Feb. 1990)
Effect of Termination of Employment
Fixed-Term Employment vs. Project Employment
Where the termination results from the expiration of
Both employments are time bound or for a certain period – Service Agreement, or from the completion of the phase
as agreed upon at the time of engagement. However, in of the job or work for which the employee is engaged,
project employment, the Ee is tasked to do specific the latter may opt to wait for re-employment within 3
undertaking, which is not present in fixed-term months to resign and transfer to another contractor-
employment. employer. Failure of the contractor to provide new
employment shall entitle the employee to separation
benefits, as may be provided by law or the Service
Agreement, whichever is higher, without prejudice to
his/her entitlement to completion bonuses or other

49 U N IV E R S I T Y O F S A N T O T O M A S
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emoluments. Furthermore, the mere expiration of the to control of their Er except as to the result of their work.
Service Agreement shall not be deemed as a (Villuga v. NLRC, G.R. No. 75038, 23 Aug. 1993)
termination of employment of the
contractor’s/subcontractor’s employee, who are the NOTE: Independent contractors often present themselves
regular employees of the latter. to possess unique skills, expertise, or talent to distinguish
them from ordinary Ees. (Sonza v. ABS-CBN, G.R. No. 138051,
b) DOLE D.O. No. 150-16 (Private Security Guards) 10 June 2004)

Reserved Status b) TRILATERAL RELATIONSHIP

If after a period of 6 months, the Security Service There are three parties involved in these arrangements:
Contractor/Private Security Agency cannot provide
work or give an assignment to the reserved security 1. Principal (Contractee)
guard, the latter can be separated from service and shall 2. Contractor or subcontractor
be entitled to separation pay. An assignment of the 3. Contractual workers
security guard and other private security personnel as
a reliever for less than one-month shall not be "Trilateral Relationship"
considered as an interruption of the six (6) months
period. (Sec. 10.3, DOLE D.O. No. 150-16) Refers to the relationship in a contracting or subcontracting
arrangement where there is a contract for a specific job,
3. LEGITIMATE SUBCONTRACTING VS. LABOR-ONLY work or service between the principal and the contractor,
CONTRACTING and a contract of employment between the contractor and
its workers.

a) ELEMENTS
There is no employer-employee relationship between the
contractor and principal who engages the contractor’s
LEGITIMATE LABOR-ONLY
services, but there is an employer-employee relationship
SUBCONTRACTING CONTRACTING
between the contractor and workers hired to accomplish
the work for the principal.
1. The contractor or
subcontractor carries on a 1. The contractor or
Job Contracting vs. Labor-only Contracting
distinct and independent subcontractor does not
business and undertakes have substantial capital or
LABOR-ONLY
to perform the job, work or investment to perform the JOB CONTRACTING
CONTRACTING
service on its own account job, work or service under
The Er/principal is treated
and under its own its own account and
as direct Er of the
responsibility according to responsibility; and The Er/principal is merely
contractor’s Ees in all
its own manner and an indirect Er, by operation
instances.
method, and free from the 2. The Ees recruited, of law, of his contractor’s
control and direction of the supplied, or placed by such Ees.
(Contractor = agent of the
principal in all matters contractor or
Er)
connected with the subcontractor are
The law creates an Er-Ee The statute creates an Er-
performance of the work performing activities
relationship for a limited Ee relationship for a
except as to the results which are directly related
purpose. comprehensive purpose.
thereof; to the main business of the
The principal becomes The principal becomes
principal. (Sasan v. NLRC,
solidarily liable. The solidarily liable with the
2. The contractor or G.R. No. 176240, 17 Oct.
liability, however, does not contractor not only for
subcontractor has 2008)
extend to the payment of unpaid wages but also for
substantial capital or
backwages or separation all the rightful claims of the
investment; and
pay of Ees who are illegally Ees under the Labor Code
3. The Service Agreement
dismissed. and ancillary laws.
ensures compliance with
Allowed by law Prohibited by law
all the rights and benefits
Presence of substantial Absence of substantial
for all the Ees of the
capital or investment. capital or investment.
contractor or
subcontractor under the
labor laws. (Sec. 8, D.O. No. c) SOLIDARY LIABILITY
174, s. 2017)
Extent of Principal’s Liability in Legitimate Contracting
Independent Contractor
The contractor or subcontractor shall be considered the Er
of the contractual Ee for purposes of enforcing the
Those who undertake “job-contracting.” They exercise
independent employment, contracting to do a piece of work provisions of the LC and other social legislation.
according to their own methods and without being subject

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 LABOR LAW AND SOCIAL LEGISLATION
The principal shall be solidarily liable with the contractor in 1. JUST CAUSES
the event of any violation of any provisions of the Labor
Code, including the failure to pay wages. (D.O. No. 18-02)
Just Causes for Termination

Liability
1. Serious misconduct or willful disobedience by the Ee
of the lawful orders of his Er or representative in
1. For failure to pay the minimum wage or the service
connection with his work;
incentive leave or other benefits – The principal is
2. Gross and habitual neglect of duties by the Ee;
equally liable with the contractor as if the principal
3. Fraud or willful breach by the Ee of the trust reposed
were the direct Er.
in him by his Er or duly organized representative;
4. Commission of a crime or offense by the Ee against the
2. With punitive character – Such as an award for
person of his Er or any immediate member of the
backwages and separation pay because of an illegal
latter’s family or his duly authorized representative; or
dismissal of the contractor’s Ee, the liability should be
5. Other causes analogous to the foregoing. (Art. 297, LC)
solely that of the contractor, in the absence of proof
that the principal conspired with the contractor in the
SERIOUS MISCONDUCT AND WILLFUL DISOBEDIENCE
commission of the illegal dismissal.
Serious Misconduct

B. TERMINATION OF EMPLOYMENT BY EMPLOYER It is an improper or wrong conduct; the transgression of

some established and definite rule of action, a forbidden act,
a dereliction of duty, willful in character, and implies
2-Fold Requirement for Lawful Dismissal wrongful intent and not mere error in judgment. To be
serious within the meaning and intendment of the law, the
1. Substantive – legality or illegality of the act of dismissal misconduct must be of such grave and aggravated character
(just and authorized causes) and not merely trivial or unimportant. (Villamor Golf Club v.
2. Procedural – legality or illegality of the manner of Pehid, G.R. No. 166152, 04 Oct. 2005)
dismissal (due process; notice and hearing)
Elements
SUBSTANTIVE DUE PROCESS
1. It must be serious or of such a grave and aggravated
JUST CAUSE character;
A just cause dismissal implies that the Ee has committed, 2. Must relate to the performance of the Ees’ duties; and
or is guilty of, some violation against the Er, that is, the Ee 3. Ee has become unfit to continue working for the Er.
has committed some serious misconduct, is guilty of (Philippine Aeolus Automotive United Corp. v. NLRC, G.R.
fraud against the Er or he has neglected his duties such No. 124617, 28 Apr. 2000)
as abandonment.
Willful Disobedience
Thus, the Ee himself initiated the dismissal process.
Payment of separation pay, as a rule, is not required in There is willful disobedience when there is wanton
just cause dismissal. However, where the Ee is dismissed disregard to follow orders of the Er.
for causes other than serious misconduct or those
reflecting on his moral character, separation pay may be Requisites
allowed as a measure of social justice. (Poquiz, 2012)
AUTHORIZED CAUSE 1. The Ees assailed conduct must have been willful or
Authorized cause dismissal is a form of terminating Er- intentional, the willfulness being characterized by
Ee relationship with a liability on the part of the Er to pay a wrongful and perverse attitude; and
separation pay as mandated by law. It does not
necessarily imply delinquency or culpability on the part 2. The disobeyed orders, regulations, or instructions
of the Ee. Instead, the dismissal process is initiated by the of the Er must be:
Er's exercise of his management prerogative such as
installation of labor-saving devices, closure of business, a. Reasonable and lawful;
or implementing a retrenchment program. (Jaka Food v. b. Sufficiently known to the Ee; and
Pacot, G.R. No. 151378, 28 Mar. 2005) c. In connection with the duties which the Ee has
been engaged to discharge. (Cosep v. NLRC, G.R.
Three-fold Liability Rule No. 124966, June 16, 1998; Realda v. New Age
Graphics, G.R. No. 192190, 25 Apr. 2012)
The "threefold liability rule" holds that the wrongful acts or
omissions of a person may give rise to civil, criminal and Valid Transfer
administrative liability, which may proceed independently
of one another, as in fact, the quantum of evidence required GR: Management has the right to transfer or reassign an Ee.
in each case is different. (Jose S. Ramiscal, Jr. vs. Commission The right of the Er to transfer the Ees in the interest of the
on Audit, G.R. No. 213716) efficient and economic operation of its business cannot be
seriously challenged.

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 PRE-WEEK NOTES 2023
XPN: Where the transfer is vitiated by improper motive and a. Failure to report for work or absence without
is merely a disguised attempt to remove or punish the Ee justifiable reason; and
sought to be transferred. (Associated Labor Unions v. NLRC, b. Clear intention to sever Er-Ee relationship
G.R. Nos. 76916-17, 31 Mar. 1983) manifested by some overt acts. (Labor et. al v.
NLRC, G.R. No. 110388, 14 Sept. 1995)
Disobedience of an Inconvenient Transfer
Abandonment as a Just Cause for Termination
GR: Inconvenience to the Ee does not necessarily invalidate
a transfer order. It means deliberate and unjustified refusal of an Ee to
resume his employment.
NOTE: The transfer from one city to another within the
country is valid if there is no bad faith on the part of the Er. Requirements for a Valid Finding of Abandonment
(Homeowners Savings and Loan Association, Inc. v. NLRC, et
al., G.R. No. 97067, 26 Sept. 1996) 1. The failure to report for work, or absence without valid
or justifiable reason; and
XPN: Inconvenience caused by unreasonableness of the 2. A clear intention to sever Er-Ee relationship, with the
transfer order makes the order itself invalid, and 2nd element as the more determinative factor, being
disobedience thereof is not a reason to dismiss the worker. manifested by some overt acts. (Sta. Catalina College v.
NLRC, G.R. No. 144483, 19 Nov. 2003)
GROSS AND HABITUAL NEGLECT OF DUTIES
Gross Negligence vs. Habitual Neglect
It implies a want or absence of or failure to exercise
diligence that an ordinary prudent man would use in his The former connotes want of care in the performance of
own affairs. one’s duties while the latter implies repeated failure to
perform one’s duties over a period of time, depending upon
Degree of Negligence as a Just Cause for Termination the circumstances. (Azucena, 2016)

GR: Gross and habitual negligence. FRAUD OR WILLFUL BREACH OF TRUST

a. Gross neglect has been defined as the want or absence Willful Breach of Trust
of or failure to exercise slight care or diligence, or the
entire absence of care. It evinces a thoughtless A breach is willful if it is done intentionally, knowingly, and
disregard of consequences without exerting any effort purposely without justifiable excuse, as distinguished from
to avoid them. (NBS v. Court of Appeals. G.R. No. 146741, an act done carelessly, thoughtlessly, heedlessly, and
27 Feb. 2002) inadvertently. (Austria v. NLRC, G.R. No. 124382, 06 Aug.
1999) But loss of trust or confidence can be based on gross
b. Habitual neglect implies repeated failure to perform negligence. (School of the Holy Spirit of Quezon City v.
one’s duties over a period of time, depending upon the Taguiam, G.R. No. 165565, 14 July 2008)
circumstance. (JGB and Associates v. NLRC, G.R. No.
10939, 07 Mar. 1996) Requisites of Fraud or Willful Breach of Trust

XPN: An Ee who was grossly negligent in the performance 1. There must be an act, omission, or concealment;
of his duty, though such negligence committed was not 2. The act, omission, or concealment involves a breach of
habitual, may be dismissed especially if the grossly legal duty, trust, or confidence justly reposed;
negligent act resulted in substantial damage to the 3. It must be committed against the Er or his/her
company. (LBC Express v. Mateo. G.R. No. 168215, 09 June representative; and
2009) 4. It must be in connection with the Ee’s work.

Requisites of Poor Performance as a Ground for Loss of Confidence

Termination
There is loss of confidence when the Er has reasonable
1. Er must prove that it has set standards of performance ground or has basis to believe that the Ee is responsible for
expected of the Ee; the misconduct and the nature of his participation renders
2. The standards must have been made known to the Ee; him unworthy of the trust and confidence demanded by his
3. These standards must be reasonable and in connection position. Proof beyond reasonable doubt it not required.
with the Ee’s work; and (Jerusalem v. Keppel Monte Bank, G.R. No. 169564, 06 Apr.
4. There must be proof that the Ee failed to meet the 2011)
standards despite the given reasonable opportunity to
meet the same. Loss of Trust and Confidence as a Just Cause for
Termination:
Some Forms of Neglect of Duty
1. It applies only to cases involving:
1. Habitual tardiness and absenteeism;
2. Abandonment:

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a. Ees occupying positions of trust and confidence Doctrine of Incompatibility
(confidential and managerial Ee’s)
b. Ees routinely charged with the care and custody of Where the Ee has done something that is contrary or
the Er’s money or property incompatible with the faithful performance of his duties, his
Er has a just cause for terminating his employment. (Manila
2. The loss of trust and confidence must be based on Chauffeur’s League v. Bachrach Motor Co., G.R. No. L-47071,
willful breach. 29 June 1940)

3. The act constituting the breach must be “work-related” Doctrine of Commensurate Penalty or “Proportionality
such as would show the Ee concerned to be unfit to Rule”
continue working for the Er. (Gonzales v. NLRC, G.R. No.
131653, 26 Mar. 2001) In this regard, it is a hornbook doctrine that infractions
committed by an Ee should merit only the corresponding
4. It must be substantial and founded on clearly penalty demanded by the circumstance. The penalty must
established facts sufficient to warrant the Ee’s be commensurate with the act, conduct or omission
separation from employment. (Sulpicio Lines Inc. v. imputed to the Ee and must be imposed in connection with
Gulde, G.R. No. 149930, 22 Feb. 2002) the disciplinary authority of the Er. (Sagales v. Rustans
Commercial Corporation, G.R. No. 166554, 27 Nov. 2008)
5. Fraud must be committed against the Er or his
representatives. Factors that can be considered

COMMISSION OF A CRIME OR OFFENSE 1. Length of service;

2. Gravity of the offense;
Requisites 3. Nature of the position;
4. Nature of the business;
1. There must be an act or omission 5. First offense rule;
punishable/prohibited by law; and 6. Totality of infractions;
7. Principle of charity, compassion and understanding;
2. The act or omission was committed by the Ee against and
the person of the Er, any immediate member of 8. Principle of equity.
his/her family, or his/her duly authorized
representative. (Sec. 5.2(f), D.O. No. 147-15) 2. AUTHORIZED CAUSES

An Er’s immediate family shall refer to the spouse,

Authorized causes are initiated by the Er’s exercise of
ascendants, descendants or legitimate, natural, or
management prerogative, who shall be liable to pay
adopted brothers or sisters of the Er or of his relative
separation pay as mandated by law. It does not usually
by affinity in the same degrees, and those by
require delinquency or culpability on the part of the Ee.
consanguinity within the fourth civil degree. (Art.
11(2), RPC)
Authorized causes of termination by the Er:

Conviction not a Condition Sine Qua Non

1. Installation of labor-saving devices;
2. Redundancy;
The conviction of an Ee in a criminal case is not
3. Retrenchment ;
indispensable to warrant his dismissal by his Er. (Starlite
4. Closing or cessation of operation of the establishment
Plastic Industrial Corporation v. NLRC. G.R. No. 78491, 16
or undertaking; and
Mar. 1989)
5. Disease.

ANALOGOUS CAUSES
INSTALLATION OF LABOR-SAVING DEVICES or
AUTOMATION
For an act to be included in analogous cases of just causes of
termination, it must be due to the voluntary and/or willful
Automation is a management prerogative of replacing
act or omission of the Ee. (Nadura v. Benguet Consolidated,
manpower with machine power in order to effect more
G.R. No. L-17780, 24 Aug. 1962)
economy and greater efficiency in method of production.

Requisites
Requisites for a Valid Automation

1. There must be an act or omission like those specified

1. Written notice to the Ee and to the DOLE at least one
just causes; and
(1) month before the intended date of termination;
2. The act or omission was voluntary and/or willful on
2. Payment of separation pay of at least one (1) month
the part of the Ees. (Sec. 5.2 [g], D.O. No. 147-15)
for every year of service;
3. Good faith in the discharge of Ees; and,
4. Reasonable criteria to be used in implementing
automation.

53 U N IV E R S I T Y O F S A N T O T O M A S
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REDUNDANCY 4. Proof of expected or actual losses;

It is the superfluity in the performance of a particular work. 5. To show that the Er first instituted cost reduction
It exists where the services of an Ee are in excess of what is measures in other measures in other areas of
reasonably demanded by the actual requirements of the production before undertaking retrenchment as a last
enterprise. resort; and

Requisites of Redundancy 6. The Er used fair and reasonable criteria in

ascertaining who would be retained among the Ees,
1. There must be superfluous positions or services of such as status, efficiency, seniority, physical fitness,
Ees; age, and financial hardship of certain workers. (FASAP
2. The positions or services are in excess of what is v. PAL, G.R. No. 178083, 02 Oct. 2009)
reasonably demanded by the actual requirements of
the enterprise to operate in an economical and Criteria In Selecting Ees To Be Retrenched
efficient manner;
3. There must be good faith in abolishing redundant There must be fair and reasonable criteria to be used in
positions; selecting Ees to be dismissed such as:
4. There must be fair and reasonable criteria in selecting
the Ees to be terminated; and 1. Less preferred status;
5. There must be an adequate proof of redundancy such 2. Efficiency rating;
as but not limited to the new staffing patter, feasibility 3. Seniority (Phil. Tuberculosis Society, Inc. v. National
studies or proposal, on the viability of the newly Labor Union, G.R. No. 115414, 25 Aug. 1998)
created positions, job description and the approval by 4. Contribution to income (Talam v. NLRC, The Software
the management of the restructuring. Factory, etc., G.R. No. 175040, 06 Apr. 2010)

RETRENCHMENT “Last In First Out” (L-I-F-O) Rule

It is the reduction of personnel usually due to poor financial It applies to termination of employment in the same line of
returns as to cut down on costs of operations in terms of work. What is contemplated in the LIFO rule is that when
salaries and wages to prevent bankruptcy of the company. there are two or more Ees occupying the same position in
(Poquiz, 2018) the company affected by the retrenchment program, the last
one employed will necessarily be the first one to go. (Maya
Standards of Preventive Retrenchment Farms Ees Organization v. NLRC, G.R. No. 106256, 28 Dec.
1994)
1. The losses expected should be substantial and not
merely de minimis in extent; The substantial loss “Last In First Out” Rule Mandatory
apprehended must be reasonably imminent;
GR: In cases of installation of labor-saving devices,
2. It must be reasonably necessary and likely to redundancy and retrenchment, the LIFO rule shall apply.
effectively prevent the expected losses; and,
XPN: When an Ee volunteers to be separated from
3. Alleged losses if already realized, and the expected employment. (DOLE D.O. No. 147-15, Series of 2015)
imminent losses sought to be forestalled, must be
proven by sufficient and convincing evidence. (Lopez CLOSURE OF BUSINESS
Sugar Corporation v. Federation of Free Workers, et al.,
G.R. Nos. 75700-01 Aug. 1990) A firm which faces serious business decline and losses is
entiled to close its business in order to avoid further
Evidence to Prove Losses economic loss, and a court has no power to require such
firm to continue operating at a loss. (Unicorn Safety Glass v.
Financial Statements must be audited by independent Basarte, et. Al., G.R. No. 154689, 25 Nov. 2004)
external auditors, and for GOCCs, financial statements must
be audited by the Commission on Audit. (Chan, 2019) Kinds of Closure:

Requisites of a Valid Retrenchment 1. Partial Closure – although grounded on economic

losses, partial closure is a form of retrenchment.
1. Written notice served on both the Ee and the DOLE at
least one (1) month prior to the intended date of Requirements:
retrenchment;
1. Written notice to the EE and to the DOLE at least
2. Payment of separation pay equivalent to at least one 1 month before the intended date of termination;
month pay or at least 1/2 month pay for every year of 2. Separation pay equivalent to at least 1/2 month
service, whichever is higher; pay for every year of service; and
3. Cessation of business is bona fide in character.
3. Good faith in effecting retrenchment;

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2. Total Closure due to economic reverses or losses absorbed Ees subsists. Necessarily, these absorbed Ees are
not entitled to separation pay. (The Philippine Geothermal,
Requirements: Inc. Ees Union v. Unocal Philippines, Inc. [now known as
1. Written notice to the EE and to the DOLE at Chevron Geothermal Philippines Holdings, Inc.] G.R. No.
least 1 month before the intended date of 190187, 28 Sept. 2016)
termination; and
2. Cessation of business is due to serious DISEASE
economic reverses or losses.
Substantive Elements for Disease as a Ground for
Requisites Dismissal

a. Written notice served on both the Ees and the 1. An Ee has been found to be suffering from any
DOLE at least 1 month prior to the intended date of disease, whether contagious or not;
closure;
2. His continued employment is prohibited by law or
b. Payment of separation pay equivalent to at least prejudicial to his health or to the health of his co-Ees;
one month pay or at least 1/2 month pay for every and (Sec. 8, Book VI, Rule I, IRR)
year of service, whichever is higher, except when
closure is due to serious business losses; 3. A competent public health authority certifies that the
disease is of such nature or at such a stage that it
c. Good faith; cannot be cured within a period of six months even
d. No circumvention of the law; and with proper medical treatment;
e. No other option available to the Er.
4. Payment of separation pay equivalent to at least one
Test for the validity of closure or cessation of month salary or to one-half month salary for every
establishment or undertaking year of service, whichever is greater, a fraction of six
months being considered as one whole year. (Jiao, et.
To be a valid ground for termination the following must be al. v. NLRC, Global Business Bank, et. al., G.R. No.
present: 182331, 18 Apr. 2012)

1. There must be a decision to close or cease operation of Procedure in terminating an Ee’s employment on the
the enterprise by the management; ground of disease
2. The decision was made in good faith; and,
3. There is no other option available to the Er except to 1. The Er shall not terminate his employment unless:
close or cease operations. (Sec. 5.4(d), D.O. No. 147,
Series of 2015) a. There is a certification by a competent public
health authority; and
There is no obligation to pay separation pay b. That the disease is of such nature or at such a stage
that it cannot be cured within a period of 6 months
1. When the closure of the business is due to serious even with proper medical treatment.
business loss; and
2. Where closure of business is by compulsion of law Entitlement to reinstatement
because closure of business is not attributed to Er’s
will. (e.g., the land where the building is situated was An Ee suffering from a disease is entitled to a reinstatement,
declared covered by the CARL) provided he presents a certification by a competent public
health authority that he is fit to return to work. (Cebu Royal
Successor-employer Doctrine Plant v. Deputy Minister, G.R. No. L-58639, 12 Aug. 1987)

The "successor employer" doctrine refers to a sale or Other authorized causes

transfer in ownership of an entity that has been done in bad
faith or to defeat the rights of labor. In such a case, it is as if 1. Total and permanent disability of Ee;
there have been no changes in employer-employee 2. Valid application of union security clause;
relationship between the seller and its employees. The 3. Expiration of period in term of employment;
buyer becomes a "successor employer" and is obliged to 4. Completion of project in project employment;
absorb the displaced employees. (Philippine Airlines, Inc. v. 5. Failure in probation;
National Labor Relations Commission, G.R. No. 125792, 9 Nov. 6. Relocation of business to a distant place;
1998) 7. Defiance of return-to work-order;
8. Commission of Illegal acts in strike;
Merger of Corporations 9. Violation of contractual agreement; and
10. Retirement.
The merger of a corporation does not operate to dismiss the
Ees of the corporation absorbed by the surviving
corporation. This is in keeping with the nature and effects
of a merger as provided under law and the constitutional
policy protecting the rights of labor. The employment of the

55 U N IV E R S I T Y O F S A N T O T O M A S
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Other Causes of Termination 4. TERMINATION OF CONTRACT OF MIGRANT
WORKERS (R.A. No. 8042, as amended by R.A. No.
An employee shall not be terminated on the basis of actual, 10022)
perceived or suspected:

Relief of a Worker When Terminated Without Valid

a) HIV status;
Cause
b) Hepatitis B status;
c) Has or had Tuberculosis; (Sec. 6, DOLE D.O. No.
1. Full reimbursement of his placement fee with 12%
147-15) and
interest per annum; and
d) COVID-19. (Sec. 5, Omnibus Guidelines on the
2. Salaries for the unexpired portion of his employment
Implementation of Community Quarantine in the
contract. (R.A. No. 8042, as amended by R.A. No. 10022)
Philippines, Inter-Agency Task Force on Emerging
Infectious Diseases)

C. TERMINATION OF EMPLOYMENT BY EMPLOYEEE

3. DUE PROCESS

a) TWIN NOTICE REQUIREMENT

Two Types of Resignation

The Two-Notice Rule requires that:

1. Voluntary Resignation; and
2. Involuntary Resignation or Constructive Dismissal.
1. There must be a notice stating the ground for
termination and requiring the Ee to explain his
side; and 1. RESIGNATION vs. CONSTRUCTIVE DISMISSAL
2. There must be a notice for the termination itself.
CONSTRUCTIVE
RESIGNATION
Indemnity in the Form of Nominal Damages DISMISSAL
As to Definition
An Er is liable to pay indemnity in the form of nominal It occurs when there is
damages to an Ee who has been dismissed if, in effecting cessation of work because
such dismissal, the Er fails to comply with the requirements It is the voluntary act of an continued employment is
of due process. Ee who “finds himself in a rendered impossible,
situation where he unreasonable, or unlikely
The burden of proof in termination cases believes that personal as when there is a
reasons cannot be demotion in rank or
The burden of proof rest upon the Er to show that the sacrificed in favor of the diminution in pay or when
dismissal of the Ee is for a just cause, and failure to do so exigency of the service, a clear discrimination,
would necessarily mean that the dismissal is not justified, then he has no other choice insensibility, or disdain by
consonant with the constitutional guarantee of security of but to disassociate himself an Er becomes unbearable
tenure. from his employment.” to the Ee leaving the latter
(Intertrod Maritime, Inc. v. with no other option but to
b) HEARING NLRC, G.R. No. 81087, 19 quit (The University of
June 1991) Immaculate Conception v.
Hearing is not an indispensable part of due process NLRC, G.R. No. 181146, 26
Jan. 2011)
Sec. 2(d), Rule I of the IRR of Book VI of the LC provides that As to Voluntariness
the so-called standards of due process outlined therein shall Involuntary or forced
be observed “substantially,” not strictly. This is a Voluntary
resignation
recognition that while a formal hearing or conference is As to Entitlement to Separation Pay
ideal, it is not an absolute, mandatory or exclusive avenue Not entitled to separation
of due process. (Perez v. PT&T, G.R. No. 152048, 29 Apr. pay unless it is a company Entitled to either
2009) practice or provided in the reinstatement or
CBA. (Hanford Philippines separation pay and
Liability for Nominal Damages When Due Process is Not Inc. v. Shirley Joseph, G.R. backwages
Observed No. 158251, 31 Mar. 2005)
As to Burden of Proof
It was held that when dismissal is for just or authorized Burden of proving
cause, but due process was not observed, the dismissal Burden of proving
constructive dismissal is
should be upheld. (Agabon v. NLRC, G.R. No. 158693, 17 Nov. voluntariness is on the Er.
on the Ee.
2004)
Resignation
The Er, however, should be held liable for non-compliance
with the procedural requirements of due process in the 1. With written notice - An Ee may terminate without just
form of damages. cause the Er-Ee relationship by serving a written notice

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 LABOR LAW AND SOCIAL LEGISLATION
on the Er at least one (1) month in advance. (Art. 300(a),
LC) D. PREVENTIVE SUSPENSION

2. Without written notice – An Ee may put an end to the

relationship without serving any notice on the Er for
Preventive suspension
any of the following just causes. (Art. 300(b), LC):

It means that during the pendency of the investigation, the

a. Serious insult by the Er or his representative on
Er may place the Ee under preventive suspension leading to
the honor and person of the Ee;
termination when there is an imminent threat or a
b. Inhuman and unbearable treatment accorded
reasonable possibility of a threat to the lives and properties
the Ee by the Er or his representative;
of the Er, his family and representatives as well as the
c. Commission of a crime or offense by the Er or
offender’s co-workers by the continued service of the Ee.
his representative against the person of the Ee
(Sec. 8, Rule XXIII, Book V, IRR)
or any of the immediate members of his family;
and
Duration of preventive suspension
d. Other causes analogous to any of the foregoing.

It should not last for more than 30 days. The Ee should be

Withdrawal of Resignation
made to resume his work after 30 days. It can be extended
provided the Ee’s wages are paid after the 30-day period.
Resignation is withdrawable even if the Ee has called it
irrevocable. (Custodio v. Ministry of Labor and Employment,
This period is intended only for the purpose of investigating
G.R. No. 643174, 19 July 1990) But after it is accepted or
the offense to determine whether he is to be dismissed or
approved by the Er, its withdrawal needs the Er’s consent.
not. It is not a penalty.
(Azucena, 2016)

Preventive suspension exceeding 30 days will amount to

Resignation Pay
constructive dismissal.

GR: An Ee who voluntarily resigns from employment is not

NOTE: If more than one (1) month, the Ee must be
entitled to separation pay.
reinstated or reinstated in the payroll. Officers are liable
only for the offense committed if done with malice.
XPNs:

1. There is a stipulation for payment of such in the

employment contract or CBA; or E. RELIEFS FROM ILLEGAL DISMISSAL
2. Payment of the amount is sanctioned by established
employment practice or policy. (Travelaire & Tours
Corp. v. NLRC, G.R. No. 131523, 20 Aug. 1998) Remedies of Ee in case of Illegal Dismissal

Constructive Dismissal In case where the worker is illegally terminated, his

remedies are: (Re-F-D-I-S)
It is an Er’s act amounting to dismissal but made to appear
as if it were not. It is a dismissal in disguise. (Uniwide Sales a. Reinstatement without loss of seniority rights
Warehouse Club v. NLRC, G.R. No. 154503, 29 Feb. 2008) b. Full backwages
c. Separation pay in lieu of reinstatement;
Burden of proof on the Ee d. Damages, including Attorney’s fees; and
e. 6% Legal Interest on monetary award.
The Ee who is complaining of constructive dismissal has the
burden of proof “to prove that her resignation was not REINSTATEMENT
voluntary, but was actually a case of constructive dismissal,
with clear, positive, and convincing evidence.” (Hechanova Forms of reinstatement
v. Atty. Matorre, G.R. No. 198261, 16 Oct. 2013)
1. Actual or physical - The Ee should be reinstated to his
Relief entitled to illegally or constructively dismissed position which he occupies prior to his illegal dismissal
Ees under the same terms and conditions prevailing prior
to his dismissal or separation or, if no longer available,
An illegally or constructively dismissed Ee is entitled to: (1) to a substantially equivalent position.
either reinstatement, if viable, or separation pay, if
reinstatement is no longer viable; and (2) backwages. These 2. Payroll – The Ee is merely reinstated in the payroll.
two reliefs are separate and distinct from each other and are The Ee although not admitted back to work, would
awarded conjunctively. (Robinsons Galleria v. Ranchez, G.R. nevertheless be included in the payroll and entitled to
No. 177937, 09 Jan. 2011) receive salary and other benefits as if she were in fact
working. (Azucena, 2016)

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BACKWAGES DAMAGES

Backwages refers to the relief given to an Ee to compensate Moral Damages

him for the lost earnings during the period of his dismissal.
It presupposes illegal termination. (Azucena, 2016) Moral damages may be awarded to compensate one for
diverse injuries such as mental anguish, besmirched
Full backwages reputation, wounded feelings, and social humiliation. It is
however not enough that such injuries have arisen; it is
The LC points to "full backwages" as meaning exactly that, essential that they have sprung from a wrongful act or
i.e., without deducting from backwages, the earnings omission of the defendant which was the proximate cause
derived elsewhere by the concerned Ee during the period of thereof e.g., breach of contract. (Suario v. BPI, G.R. No. 50459,
his illegal dismissal. (Buenviaje v. CA, G.R. No. 147806, 12 25 Apr. 1989)
Nov. 2002)
Exemplary damages
Period covered by full backwages
It may be awarded only if the dismissal was shown to have
From the date of illegal dismissal to the Ee’s date of actual been effected in a wanton, oppressive or malevolent
reinstatement. manner. (Cocoland Development Corp. v. NLRC and Mago,
G.R. No. 98458, 17 July 1996)
SEPARATION PAY
Nominal Damages
Separation Pay in lieu of Reinstatement
In the determination of the amount of nominal damages
GR: Separation pay is not a usual consequence of illegal which is addressed to the sound discretion of the court,
dismissal because if there is a finding of illegal dismissal, the several factors are taken into account:
Ee shall be entitled to reinstatement and backwages.
XPNs: Separation pay takes the place of reinstatement in 1. The authorized cause invoked;
the following instances: 2. The number of Ees to be awarded;
3. The capacity of the Ers to satisfy the awards, taken into
1. When Ee’s previous position or its substantial account their prevailing financial status as borne by
equivalent position is not anymore existing, i.e., the records;
occupied by another Ee or the business is already 4. The Er’s grant of other termination benefits in favor of
closed; and the Ees;
2. When there is an application of the doctrine of 5. Whether there was a bona fide attempt to comply with
strained relations. the notice requirements as opposed to giving no notice
at all. (Industrial Timber Corp. et al. v. Ababan, et al., G.R.
Instances when Separation Pay must be Paid No. 164518, March 30, 2006)
6. The Er’s financial, medical, and/or moral assistance to
1. Termination due to authorized causes; the sick Ee; and
2. Separation pay in lieu of reinstatement; 7. The flexibility and leeway that the Er allowed the sick
3. By way of financial assistance; and Ee in performing his duties while attending to his
4. In case of termination, when it is mandated to be medical needs. (Deoferio v. Intel Technology Phil., G.R.
paid under a CBA or explicit company policy. No. 202996, 18 June 2014)

Doctrine of Strained Relations NOTE: Actual damages cannot be awarded because that is
already represented by the backwages payable to the Ee.
It is when the Er can no longer trust the Ee and vice versa or
there were imputations of bad faith to each other, ATTORNEY’S FEES
reinstatement could not effectively serve as a remedy. This
rule applies only to positions which require trust and If there is unlawful withholding of wages and benefits, then
confidence. (Globe Mackay v. NLRC, G.R. No. 82511, 03 Mar. there is going to be an award of 10% of the monetary award
1992) by way of Attorney’s Fees.

Requisites of the Doctrine of Strained Relations Commonly Accepted Concepts of Attorney's Fees

1. It must be alleged and proved by the Er; In its ordinary concept, an attorney's fee is the reasonable
2. The evidence that should sustain the application of compensation paid to a lawyer by his client for the legal
strained relations should be more than just the services he has rendered to the latter. The basis of this
illegal dismissal case that has been filed by the Ee; compensation is the fact of his employment by and his
and agreement with the client.
3. The position must involve a position of trust and
confidence. In its extraordinary concept, attorney's fees are deemed
indemnity for damages ordered by the court to be paid by
the losing party in a litigation.

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 LABOR LAW AND SOCIAL LEGISLATION
LIABILITIES OF CORPORATE OFFICERS 5. Domestic helpers or persons in the personal service of
another (D.O. No. 20, s. 1994);
GR: Officers of a corporation are not personally liable for 6. Underground mine workers (RA 8558); and
their official acts unless it is shown that they have exceeded 7. Ees of GOCCs organized under the Corporation Code
their authority. (without original charters) (Postigo, et al. v. Philippine
Tubercolosis Society, Inc., G.R. No. 155146, 24 Jan. 2006)
XPN: Where the incorporators and directors belong to a
single family, the corporation and its members can be Retirement benefits under the LC
considered as one in order to avoid its being used as an
instrument to commit injustice, or to further an end The retirement benefit provided under the Labor Code is
subversive of justice. The shield of corporate fiction shall be one-half (½) month pay for every year of service which shall
pierced when it is deliberately and maliciously designed to include:
evade financial obligations to Ees. (Pabalan v. NLRC, G.R. No.
898799, 20 Apr. 1990) Officers, then, become personally 1. 15 days salaries;
liable. 2. 1/12 of the 13th month pay; (30 days / 12 = 2.5
days) and
In labor cases, particularly, corporate directors and officers 3. Cash equivalent of 5 days incentive leave.
are solidarily liable with the corporation for the termination
of employment of corporate Ees done with malice or in bad NOTE: All in all, 22.5 days for every year of service. This will
faith. (Uichico, et al. v. NLRC, et al., G.R. No. 121434, 02 June apply in the absence of any agreement in the CBA or
1997) employment contract providing for retirement benefits, or
even if there is an agreement, but such is inferior to those
LIABILITY OF BARANGAY MICRO BUSINESS benefits under the Labor Code.
ENTERPRISES (BMBEs)
Persons NOT covered by retirement benefits
BMBEs are exempted from the coverage of the Minimum
Wage Law. (Sec. (7)(8), R.A. No. 9178) 1. Ees of the National Government and its political
subdivisions, including GOCCs (if they are covered by
BURDEN OF PROOF the Civil Service Law); and

Constructive Dismissal Cases 2. Ees of retail, service, and agricultural establishments

or operations employing not more than 10 Ees. (Sec. 2,
In constructive dismissal cases, it is the Ee who bears the Rule II, Book VI, IRR)
burden of proof since it is the Ee who is alleging that he is
being placed under circumstances that is unbearable to him. Retirement age in the absence of a retirement plan or
It is incumbent upon the Ee to prove those circumstances other applicable agreement
that proves that there is constructive dismissal.
1. Optional – Upon reaching 60 years old provided that
Actual Illegal Dismissal Cases Ee has rendered five (5) years of service.

In actual illegal dismissal cases, the Er has the burden to The option to retire upon reaching the age of 60 years
really prove that there is just or authorized cause or the Ee or more but not beyond 65 is the exclusive prerogative
is validly terminated. of the Ee if there is no provision on retirement in a CBA
or any other agreement or if the Er has no retirement
plan. (Capili v. NLRC, G.R. No. 117378, 26 March 1997)
F. RETIREMENT
2. Compulsory – 65 years old, regardless of years of
service. (Sec. 4, Rule II, Book VI, IRR)

Retirement
Retirement benefits not mandated by law may be
granted by agreement of the Ees and their Er or as a
It is the withdrawal from office, public station, business,
voluntary act on the part of the Er. Retirement benefits
occupation, or public duty. (Brion v. South Phil. Union
are intended to help the Ee enjoy the remaining years
Mission of the Seventh Day Adventist Church, G.R. No. 135136,
of his life, lessening the burden of worrying for his
19 May 1999)
financial support, and are a form of reward for his
loyalty and service to the Er. (Aquino v. NLRC, G.R. No.
Persons covered by retirement benefit
87653, 11 Feb. 1992)

All Ees in the private sector:

Five (5)-year service requirement only applies in the
absence of a retirement plan
1. Regardless of their position, designation or status;
2. Irrespective of the method by which their wages are
Being in a nature of “minimum requirement,” the parties
paid (Sec. 1, Rule II, Book VI, IRR);
cannot stipulate a period higher than five (5) years since
3. Part-time Ees;
this will run counter to the law. (Chan, 2014)
4. Ees of service and other job contractors;

59 U N IV E R S I T Y O F S A N T O T O M A S
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When provisions on retirement under the LC cannot be
applied V. JURISDICTION AND REMEDIES

1. If there is a provision on retirement in the CBA, or

in the employment contract; and
Rules to Determine Jurisdiction
2. Such provision on retirement benefits provides for
benefits at par or greater than the benefits granted
1. Reasonable Causal Connection Rule
under the Labor Code.
GR: If there is a reasonable causal connection between the
Retirement Benefits aside from Separation Pay
claim asserted and the employer-employee relations, then
the case is within the jurisdiction of the labor courts; and in
Separation pay arising from forced termination on one
the absence thereof, it is the regular courts that have
hand, and benefits given as a contractual right due to many
jurisdiction. (Tumaodos v. San Miguel Yamamura Packaging
years of faithful service, on the other hand, do not
Corp., G.R. No. 241865, 19 Feb. 2020)
necessarily exclude each other. (University of the East v. UE
Faculty Association, G.R. No. 74007, 31 July 1987)
XPN:

1. Undeployed OFWs (Sec. 7, Migrant Workers and

Overseas Filipinos Act of 1995)
2. Talents (Labor Advisory No. 04-16)
3. Inter and intra-union disputes (Art. 219(l))
NOTE: The definition of "labor dispute" under the
LC admits possibility that there can be labor
dispute in inter and intra-union disputes - disputes
where there is no Er.

2. Sole Reference to Labor Law Rule - the case brought

must be resolvable through the application solely, only and
exclusively of labor law

Thus, where the principal relief sought is to be resolved not

by reference to the Labor Code or other labor relations
statute or a collective bargaining agreement but by the
general civil law, the jurisdiction over the dispute belongs
to the regular courts of justice and not to the labor arbiter
and the NLRC. (Halagueña, et. al. v. PAL, G.R. No. 172013, 2
Oct. 2009)

A. LABOR ARBITER

1. JURISDICTION OF LABOR ARBITER VS.

JURISDICTION OF REGIONAL DIRECTOR

Nature of jurisdiction of Labor Arbiters (LAs)

LAs only have original and exclusive jurisdiction. They have

no appellate jurisdiction.

Original and Exclusive Jurisdiction of LA

The LA has original and exclusive jurisdiction over the

following cases:

1. Unfair labor practice cases;

2. Termination disputes or illegal dismissal complaints;

3. If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates of
pay, hours of work and other terms and conditions of
employment;

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4. Claims for actual, moral, exemplary and other forms of Ministerial duty of LA to implement reinstatement
damages arising from the Er-Ee relations; orders

5. Cases arising from any violation of Art. 264 (now Art. Unless there is a restraining order, it is ministerial upon the
274) of this Code, including questions involving the LA to implement the order of reinstatement and it is
legality of strikes and lockouts; and mandatory on the Er to comply therewith. (Garcia v. PAL,
G.R. No. 164856, 20 Jan. 2009)
6. Except claims for Ees Compensation, Social Security,
Medicare and maternity benefits, all other claims Instances when writ of execution of LA’s reinstatement
arising from Er-Ee relations, including those of persons order is still required
in domestic or household service, involving an amount
exceeding P5,000.00 regardless of whether The following are the instances when a writ of execution
accompanied with a claim for reinstatement. should still be issued immediately, even pending appeal, by
the Labor Arbiter to implement his order of reinstatement:
7. Money claims arising out of Er-Ee relationship or by
virtue of any law and contract, involving a Filipino 1. When the Er disobeys the prescribed directive to
worker for overseas deployment, including claims for submit a report of compliance within 10 calendar
actual, moral, exemplary and other forms of damages as days from receipt of the decision; or
well as employment termination of OFWs;
2. When the Er refused to reinstate the dismissed Ee.
8. Wage distortion disputes in unorganized
establishments not voluntarily settled by the parties Effect of Reversal of Reinstatement Order
pursuant to R.A. 6727 as reflected in Art. 124;
1. Actually reinstated: The Bergonio Rule
9. Enforcement of compromised agreements when there
is non-compliance by any of the parties pursuant to Art. After reversal of LA’s decision, the Er’s duty to
233 of the LC, as amended; reinstate the dismissed Ee in the actual service or in
the payroll is effectively terminated. The Ee, in turn
10. Contested cases under the exception clause of Art. is not required to return the wages that he had
128(b) of the LC; and received prior to the reversal of the LA’s decision.
(Bergonio Jr. v. South East Asian Airlines, 21 Apr.
11. Other cases as may be provided by law. 2014)

Requisites for validity and enforceability of 2. Payroll reinstatement: The Wenphil Rule
quitclaims and waivers of employees
The period for computing the backwages due to the
1. A fixed amount as full and final compromise dismissed Ees during the period of appeal should end
settlement; on the date that a higher court reversed the labor
arbitration ruling of illegal dismissal. (Wenphil
2. The benefits of the employees if possible with the Corporation v. Abing, G.R. 207983, 07 Apr. 2014)
corresponding amounts, which the employees
are giving up in consideration of the fixed 2. REQUISITES TO PERFECT AN APPEAL WITH THE
compromise amount; NATIONAL LABOR RELATIONS COMMISSION

3. A statement that the employer has clearly

Grounds for filing an appeal
explained to the employee in English, Filipino, or
in the dialect known to the employees — that by
The appeal may be entertained only on any of the following
signing the waiver or quitclaim, they are
grounds:
forfeiting or relinquishing their right to receive
the benefits which are due them under the law;
1. If there is prima facie evidence of abuse of discretion
and
on the part of the LA or RD;

4. A statement that the employees signed and

2. If the decision, award or order was secured through
executed the document voluntarily, and had fully
fraud or coercion, including graft and corruption; and
understood the contents of the document and
that their consent was freely given without any
3. If made purely on questions of law; or
threat, violence, duress, intimidation, or undue
influence exerted on their person.
4. If serious errors in the findings of facts are raised
which, if not corrected, would cause grave or
irreparable damage or injury to the appellant. (Sec. 2,
Rule VI, NLRC 2011 Rules of Procedure)

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Requirements to Perfect an Appeal before the NLRC 3. Compliance with the foregoing conditions shall
suffice to suspend the running of the ten-day
1. Filed within the reglementary period of 10 calendar reglementary period to perfect an appeal from the
days from receipt if it involves a decision, award, or Labor Arbiter’s decision to the NLRC;
order of the LA, or 5 calendar days from receipt if it
involves a decision or resolution of the RD; 4. The NLRC retains its authority and duty to resolve the
motion to reduce bond and determine the final
2. Verified by the appellant himself in accordance with amount of bond that shall be posted by the appellant,
Sec. 4, Rule 7 of the ROC, as amended; still in accordance with the standards of “meritorious
grounds” and “reasonable amount”; and
3. In the form of a memorandum of appeal which shall
state the grounds relied upon and arguments in 5. If the NLRC denies the motion to reduce bond or
support thereof, the relief prayed for, and with a requires a bond that exceeds the amount of the
statement of the date the appellant received the provisional bond, the appellant shall be given a fresh
appealed decision, resolution or order; period of ten (10) days from notice of the NLRC order
within which to perfect the appeal by posting the
4. In three legibly typewritten or printed copies; required appeal bond. (McBurnie v. Gauzon, G.R. No.
178034, 13 Oct. 2013)
5. Accompanied by:
3. REINSTATEMENT AND/OR EXECUTION PENDING
a. Proof of payment of the required appeal fee; APPEAL
b. Posting of a cash or surety bond as provided in
Sec. 6 of this Rule;
Q: Is an illegally dismissed Ee entitled to reinstatement
c. A certificate of non-forum shopping; and
as a matter of right?
d. Proof of service upon the other parties. (Sec. 4,
Rule VI, NLRC 2011 Rules of Procedure)
A: GR: YES.

Forms of Appeal Bond

XPNs: Proceeds from an illegal dismissal wherein
reinstatement is ordered but cannot be carried out as in
It shall either be in the form of cash deposit or surety bond
the following cases:
equivalent in amount to the monetary award, exclusive of
damages and attorney’s fees. (Sec. 6, Rule VI, NLRC 2011
1. Reinstatement cannot be effected in view of the
Rules of Procedure)
long passage of time or because of the realities
of the situation;
Motion to Reduce Bond
2. It would be inimical to the Ers’ interest;
3. When reinstatement is no longer feasible;
GR: No motion to reduce bond shall be entertained.
4. When it will not serve the best interest of the
parties involved;
XPNs: Only when there are:
5. Company will be prejudiced by reinstatement;
1. Meritorious grounds; and
6. When it will not serve a prudent purpose;
2. Upon posting of a bond in reasonable amount in
7. When there is resultant strained relation
relation to the monetary award.
(applies to both confidential and managerial Ees
only); or
NOTE: The mere filing of a motion to reduce bond without
8. When the position has been abolished. (Applies
complying with the requisites in the preceding paragraphs
to managerial, supervisory and rank-and-file
shall not stop the running of the period to perfect an appeal.
Ees).
(Sec. 6, Rule VI, NLRC 2011 Rules of Procedure)

NOTE: In such cases, it would be more prudent to order

McBurnie Guidelines
payment of separation pay instead of reinstatement.
(Quijano v. Mercury Drug Corporation, G.R. No. 126561, 08
The following guidelines shall be observed:
July 1998)

1. The filing of a motion to reduce appeal bond shall be

Refund Doctrine
entertained by the NLRC subject to the following
conditions:
The refund doctrine easily demonstrates how a favorable
decision by the LA could harm, more than help, a dismissed
(1) There is meritorious ground; and
employee. (Garcia v. Philippine Airlines, Inc., G.R. No. 164856,
(2) A bond in reasonable amount is posted;
20 Jan. 2009)

2. For purposes of compliance with condition no. (2), a

motion shall be accompanied by the posting of a
provisional cash or surety bond equivalent to 10% of
the monetary award subject of the appeal, exclusive
of damages and attorney’s fees;

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2. Injunction in ordinary labor disputes to enjoin or
B. NATIONAL LABOR RELATIONS COMMISSION restrain any actual or threatened commission of
any or all prohibited or unlawful acts or to require
the performance of a particular act in any labor
dispute which, if not restrained or performed
Powers and Functions of the NLRC
forthwith, may cause grave or irreparable damage
to any party;
1. NLRC En Banc
3. Injunction in strikes or lockouts under Art. 279 of
the LC;
a. Rule Making Power
b. Power to Issue Compulsory Processes
4. Contempt cases; and
c. Power to Investigate and Hear Disputes within its
Jurisdiction
5. Verified petitions (Sec. 3, Rule XII, 2011 NLRC Rules
d. Contempt Power
of Procedure)
e. Power to Conduct Ocular Inspection -

EXCLUSIVE APPELLATE JURISDICTION OF THE NLRC

1. Conduct an ocular inspection on any
establishment, building, ship or vessel,
The NLRC shall have exclusive appellate jurisdiction over:
place or premises, including any work,
material implement, machinery, appliance
1. Decisions, awards, or orders of the Labor Arbiter
or any object therein; and
over:
a. Cases covered by Art. 224(b);
2. Ask any Ee, laborer or any person, as the
b. Cases covered by Sec. 10 of Migrant
case may be, for any information or data
Worker’s Act; and
concerning any matter or question relative
c. Cases decided under Art. 124 on wage
to the object of the investigation. (Azucena,
distortion in non-unionized
2016)
establishment;

f. Adjudicatory Power: Original

2. Denial of the claim of the third-party claimant
g. Adjudicatory Power: Appellate
where property was levied by the Sheriff of LA
h. Power to Issue Injunction

3. Cases decided by the Regional Offices of DOLE in

Types:
the exercise of its adjudicatory function under Art.
1. Ordinary - through the issuance of a TRO.
129 of the LC over monetary claims of workers
(Art. 225, LC)
amounting to not more than P5,000 and not
accompanied by claim for reinstatement; and
2. Extraordinary - in the form of petition for
extraordinary remedies. (Rule 12, 2011
4. Decision by the LA in contempt cases. (Art. 225(d),
NLRC Rules of Procedure)
LC)

3. Ancillary - injunction is only an ancillary

Adjudication of cases by the NLRC
remedy in ordinary labor disputes. It is
not a cause of action in itself but merely a
1. The NLRC adjudicates cases by division - The
provisional remedy, an adjunct to a main
Commission shall exercise its adjudicatory and all
suit. (PAL v. NLRC, G.R. No. 120568, 20 Mar.
other powers, functions and duties through its
1998)
divisions. (Art. 220, LC)
2. NLRC Division (Eight Divisions with three members)

2. Two votes requirement - The presence of a majority of

a. Adjudicatory;
all the members of the Commission en banc or of a
b. Exercises all other powers, functions and duties;
Division, as the case may be, shall constitute a quorum.
and
The vote of the majority of the members constituting a
c. Has exclusive appellate jurisdiction over cases
quorum shall be necessary to pronounce a decision or
within their respective territorial jurisdiction.
resolution.

EXCLUSIVE ORIGINAL JURISDICTION OF THE NLRC

3. It shall be mandatory for the division to meet for
purposes of consultation.
The NLRC has exclusive original jurisdiction over the
following cases: (In2Cert-CoVe)
4. A certification that a consultation has been conducted,
signed by the presiding commissioner of the division,
1. Certified labor disputes causing or likely to cause a
shall be issued. A copy of which shall be attached to the
strike or lockout in an industry indispensable to
record of the case and served upon the parties. (Art.
national interest, certified to it by the SOLE or the
220, LC)
President of the Philippines for compulsory
arbitration;

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Composition of the NLRC 5. On which Division should take cognizance of the
certified case in case entity has several workplaces
The Commission may sit en banc or in eight (8) divisions, in different regions - Whenever a certified labor
each composed of three (3) members. (Art. 220, LC) dispute involves a business entity with several
workplaces located indifferent regions, the Division
1. Chairman; and having territorial jurisdiction over the principal office
2. 23 Members. of the company shall acquire jurisdiction to decide
such labor dispute, unless the certification order
a. 8 members each of whom shall be chosen only provides otherwise.
from among the nominees of the workers and Er
organization respectively; Effect of defiance from the certification order

b. The Chairman and the 7 remaining members shall Non-compliance with the certification order of the SOLE
come from the public sector, with the latter to be shall be considered as an illegal act committed during the
chosen preferably from among the incumbent LAs; strike or lockout and shall authorize the Commission to
and enforce the same under pain of immediate disciplinary
action, including dismissal or loss of employment status or
c. Upon assumption into office, the members payment by the locking-out Er of backwages, damages
nominated by the workers and Ers organization and/or other affirmative relief, even criminal prosecution
shall divest themselves of any affiliation with or against the liable parties. (Sec. 4, Rule VIII, NLRC 2011 Rules
interest in the federation or association to which of Procedure)
they belong. (Art. 220, LC)
Remedy of aggrieved party by the NLRC decision:
Certified Cases availability of judicial review of the NLRC’s decision

Effects of Certification of Labor Disputes Judicial review of NLRC’s decision is available through a
petition for certiorari (Rule 65, ROC) which should be
The certification of a labor dispute to the NLRC has the initially filed with the CA in strict observance of the doctrine
following effects: on the hierarchy of courts as the appropriate forum for the
relief desired. The CA is procedurally equipped to resolve
1. On intended or impending strike or lockout – Upon unclear or ambiguous factual finding, aside from the
certification, the intended or impending strike is increased number of its component divisions. (St. Martin
automatically enjoined, notwithstanding the thing of Funeral Home v. NLRC, G.R. No. 130866, 16 Sept. 1998)
any motion for reconsideration of the certification
order or the non-resolution of any such motion which
may have been duly submitted to the SOLE; C. COURT OF APPEALS

2. On actual strike or lockout – If a work stoppage has

already taken place at the time of the certification, all
Court of Appeals
striking or locked out Ees shall immediately return to
work and the Er shall immediately resume operations
GR: Decisions of the DOLE secretary, NLRC, and BLR in its
and readmit all workers under the same terms and
appellate jurisdiction, are NOT appealable to the CA as per
conditions prevailing before the strike or lockout;
the St. Martin Ruling (G.R. No. 130866, 16 Sept. 1998).
However, their decisions may be elevated to the CA via
3. On cases already filed or may be filed – All cases
petition for certiorari under Rule 65.
between the same parties, except where the
certification order specifies otherwise the issues
XPN: Orders or awards of the VA may be appealed to the CA
submitted for arbitration which are already filed or
via Petition for Review under Rule 43.
may be filed and are relevant to or are proper
incidents of the certified case, shall be considered
Requisites for filing a Petition for Certiorari
subsumed or aborted by the certified case, and shall be
decided by the appropriate Division of the
1. Allegation that such tribunal, board or officer has
Commission;
acted:
a. Without or in excess its or his jurisdiction,
4. On other pending cases – The parties to a certified
or
case, under pain of contempt, shall inform their
b. With grave abuse of discretion amounting
counsels and the Division concerned of all cases
to lack or excess of jurisdiction;and
pending with the Regional Arbitration Branches and
the Voluntary Arbitrators relative or incident to the
2. There is no appeal, or any plain, speedy, and adequate
certified case before it; and
remedy in the ordinary course of law;

NOTE: In order for the special civil actions for certiorari

and prohibition under Rule 65 of the ROC to prosper,
there must be a showing that there is no appeal or any

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 LABOR LAW AND SOCIAL LEGISLATION
plain, speedy and adequate remedy in the ordinary
course of law. (Pichay, Jr. v. The Law Department, G.R. E. BUREAU OF LABOR RELATIONS
No. 258393, 04 Jan. 2022) Hence, a Motion for
Reconsideration must have been filed before the DOLE
Secretary, NLRC, or BLR Director, as the case may be.
Coverage of the BLR’s jurisdiction and functions

The BLR no longer handles all labor management disputes.

D. SUPREME COURT Its functions and jurisdiction are largely confined to:

1. All inter-union and intra-union conflicts; (Art. 226,

Appeal from a Judgment, or Final Order or Resolution LC)
of the CA
2. All disputes, grievances or problems arising from
A party desiring to appeal may file with the Supreme Court or affecting labor-management relations in all
a verified petition for review on certiorari under Rule 45 workplaces, except those arising from the
within 15 days from notice of the judgment, final order or implementation or interpretation of collective
resolution appealed from. (Sea Power Shipping Enterprises, bargaining agreements. (Art. 226, LC)
Inc. v. CA, G.R. No. 138270, 28 June 2001)
3. Complaints involving federations, national unions,
Remedies in Summary industry unions, its officers or member
organizations (Sec. 4, Rule XI, Book V, Omnibus
File a petition for review on certiorari under Rule 45 Rules)
before the SC
4. Petition for the conduct of election of officers in the
File a petition for certiorari under Rule 65 before the case of federations, national or industry unions and
CA trade union centers. (Sec. 2, Rule XII, Book V,
Ominibus Rules)

File a MR before the NLRC

5. A request for examination of books of accounts of
federations or national unions and trade union
File an appeal to the NLRC centers pursuant to Article 274. (Sec. 3, Rule XIII,
(Art. 229) Book V, Omnibus Rules)

Decision of Labor Arbiter Kinds of cases within BLR’s jurisdiction

MR is not allowed
(Sec. 5, Rule V, NLRC 2011 Rules) The BLR has original and exclusive jurisdiction over:

Injunction Against LA/NLRC Decision 1. Inter-union disputes;

2. Intra-union disputes; and
GR: A regular court has no jurisdiction to hear and decide 3. Other related labor relations disputes.
questions which arise and are incidental to the enforcement
of decisions, orders or awards rendered in labor cases by Inter-union disputes
appropriate officers and tribunals of the DOLE.
1. Validity/invalidity of SEBA, certification election,
XPN: A separate civil action for recovery of ownership of the consent election, run-off election or re-run election.
property would not constitute interference with the powers 2. Such other disputes or conflicts involving the rights to
or processes of the LA and NLRC which rendered the self-organization, union membership and collective
judgment to enforce and execute upon the levied bargaining between and among legitimate labor
properties. (Azucena, 2016) organizations. (Sec. 1, Rule XI, Book V, IRR as amended
by D.O. 40-F-03)

Coverage of the phrase “other related labor relations

disputes”

1. Any conflict between:

a. A labor union and the Er;
b. A labor union and a group that is not a LO; or
c. A labor union and an individual who is not a
member of such union;

2. Cancellation of registration of unions and worker’s

associations filed by individual/s other than its
members, or group that is not a LO; and

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3. A petition for Interpleader involving labor relations.
(Sec. 2 Rule XI, Book V, IRR as amended by D.O. 40-F-03) F. NATIONAL CONCILIATION AND MEDIATION BOARD

Appeal of a decision in inter/intra-union dispute

National Concilliation and Mediation Board (NCMB)

A decision in an inter/intra-union dispute may be appealed,
upon compliance with the following rules:
The NCMB refers to the agency attached to the DOLE
principally in-charge of the settlement of labor disputes
1. Formal Requirements
through conciliation, mediation, and of the promotion of
a. Under oath
voluntary approaches to labor dispute prevention and
b. Consist of a memorandum of appeal
settlement.
c. Based on either of the following grounds:
i. Grave abuse of discretion;
NCMB’s Functions
ii. Gross violation of the rules;
iii. With supporting arguments and evidence.
The following are NCMB's functions, as enumerated in Sec.
22 of E.O. No. 126 or the Reorganization Act of the Ministry of
2. Period – Within 10 days from receipt of decision. (Sec.
Labor and Employment, viz:
16, Rule XI, Book V, IRR as amended by D.O. 40-F-03)

a. Formulate policies, programs, standards,

3. To whom appealable
procedures, manuals of operation and guidelines
pertaining to effective mediation and conciliation
a. BLR – If the case originated from the Med-
of labor disputes;
Arbiter/Regional Director

b. Perform preventive mediation and conciliation

b. SOLE – If the case originated from the BLR
functions;

4. Where Filed – Regional Office or to the BLR, where the

c. Coordinate and maintain linkages with other
complaint originated. Records are transmitted to the
sectors or institutions, and other government
BLR or Sec. within 24 hours from the receipt of the
authorities concerned with matters relative to the
memorandum of appeal. (Sec. 17, Rule XI, Book V, IRR as
prevention and settlement of labor disputes;
amended by D.O. 40-F-03)

d. Formulate policies, plans, programs, standards,

Extent of authority of the Bureau of Labor Relations
procedures, manuals of operation and guidelines
pertaining to the promotion of cooperative and
1. It may hold a referendum election among the
non-adversarial schemes, grievance handling,
members of a union for the purpose of determining
voluntary arbitration and other voluntary modes of
whether or not they desire to be affiliated with a
dispute settlement;
federation.

e. Administer the voluntary arbitration program;

2. But the BLR has no authority to:
maintain/update a list of voluntary arbitrations;
a. Order a referendum among union members to
compile arbitration awards and decisions;
decide whether to expel or suspend union
officers;
f. Provide counseling and preventive mediation
b. Forward a case to the Trade Union Congress of
assistance particularly in the administration of
the Philippines for arbitration and decision.
collective agreements;

Administrative functions of the Bureau of Labor

g. Monitor and exercise technical supervision over
Relations
the Board programs being implemented in the
regional offices; and
1. Regulation of the labor unions;
2. Keeping the registry of labor unions;
h. Perform such other functions as may be provided
3. Maintenance of a file of the CBA; and
by law or assigned by the Minister. (Tabigue v.
4. Maintenance of a file of all settlements or final
International Copra Export Corp., supra.)
decisions of the SC, CA, NLRC, and other agencies on
labor disputes.
Conciliator-Mediator

An officer of the NCMB whose principal function is to assist

in the settlement and disposition of labor management
disputes through conciliation and mediation, including the
promotion and encouragement of voluntary approaches to
labor disputes prevention and settlement. (Sec. 1(k), Rule I,
Book V, IRR as amended by D.O. 40-F-03)

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Alternative modes of settlement of labor dispute tempers, aids in reaching an The mediator cannot
agreement. make an award nor
1. Voluntary Arbitration; render a decision.
2. Conciliation; and
3. Mediation. Preventive Mediation

All labor disputes are required to be submitted to It refers to the potential labor dispute which is the subject
mandatory conciliation-mediation of a formal or informal request for conciliation and
mediation assistance sought by either or both parties or
GR: All issues arising from labor and employment shall be upon the initiative of the NCMB to avoid the occurrence
subject to mandatory conciliation-mediation. The LA or the of an actual labor dispute. (DOLE DO No. 40-03, s. 2003)
appropriate DOLE agency or office that has jurisdiction over
the dispute shall entertain only endorsed or referred cases How to initiate preventive mediation
by the duly authorized officer. (Art. 228(a), LC, as amended Preventive mediation proceeding may be initiated in two
by R.A. No. 103960) (2) ways:

XPNs: 1. By filing a notice or request of preventive mediation,

as distinguished from a notice of strike/lockout; or
1. Grievance machinery and Voluntary Arbitration, in
which case, their agreement will govern; and 2. By conversion of the notice of strike/lockout into a
preventive mediation case.
2. When excepted by the SOLE. (Ibid.)

Voluntary Arbitration G. DOLE REGIONAL DIRECTORS

Voluntary arbitration involves the reference of a dispute to

an impartial body, the members of which are chosen by the
Jurisdiction of the DOLE Regional Directors (RDs)
parties themselves, which parties freely consent in advance
to abide by the arbitral award issued after proceedings
The DOLE RDs have original and exclusive jurisdiction over:
where both parties had the opportunity to be heard. The
basic objection is to provide a speedy and inexpensive
1. Labor standards enforcement cases; (Art. 128, LC)
method of settling disputes by allowing the parties to avoid
the formalities, delay, expense and aggravation which
2. Small money claims cases arising from labor standards
commonly accompany ordinary litigation especially
violations in the amount not exceeding P5,000.00 and
litigation which goes through the entire hierarchy of courts.
not accompanied with a claim or reinstatement; (Art.
(Hi-Precision Steel Center, Inc. v. Lim Kim Steel Builders, Inc.,
129, LC)
G.R. No. 110434, 13 Dec. 1993)

3. Occupational safety and health violation; (Rule 6, Rules

1. CONCILIATION vs. MEDIATION on the Disposition of Labor Standards Cases in the
Regional Offices)
CONCILIATION MEDIATION
An intervention by a neutral An intervention by a 4. Complaints against private recruitment and
third party neutral third party placement agencies for local employment; (DOLE DO
No. 141-14, s. 2014)
The conciliator relies on his
persuasive expertise and The mediator starts 5. Cases submitted for voluntary arbitration in their
takes an active role in advising the parties or capacity as Ex- Officio Voluntary Arbitrators (DO No.
assisting parties by trying to offering solutions or 83 - 07, s. 2007)
keep disputants talking, alternatives to the
facilitating other procedural problems with the end in 6. Applications for registration of independent labor
niceties, carrying messages view of assisting them unions, chartered locals, workers' associations. (Sec.
back and forth between the towards voluntarily 1, Rule III, Book V, Omnibus Rules)
parties, and generally being reaching their own
a good fellow who tries to mutually acceptable 7. Requests for SEBA certification (Sec. 1, Rule VII, Book
keep things calm and settlement of the dispute. V, Omnibus Rules)
forward-looking in a tense
situation. 8. Petitions for certification election.
It is the process where a
disinterested third party It is when a third-party 9. Complaints or petitions involving labor unions with
meets with management studies each side of the independent registrations, chartered locals, workers'
and labor, at their request dispute then makes associations, its officers or members (Sec. 4, Rule XI,
or otherwise, during a labor proposals for the Book V, Omnibus Rules)
dispute or in CB disputants to consider.
conferences, and by cooling

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10. Petitions for cancellation of registration of labor Q: Who has unlimited discretion to determine what
unions with independent registration, chartered locals industries are considered indispensable to national
and workers association (Sec. 4, Rule XI, Book V, interest?
Omnibus Rules)
A:
11. Petitions for deregistration of collective bargaining 1) President of the Philippines; and
agreements (Sec. 4, Rule XI, Book V, Omnibus Rules) 2) Secretary of Labor and Employment

12. Dispute over conduct of election of officers of labor Industries Considered as Indispensable to the National
organizations (Sec. 2, Rule XII, Book V, Omnibus Rules) Interest

Money claims falling under the jurisdiction of the DOLE The following industries/services are deemed
Regional Directors indispensable to the national interest:

Under Art. 129 of the LC, the RDs have jurisdiction over 1. Hospital sector;
claims for recovery of wages, simple money claims and 2. Electric power industry;
other benefits, provided that: 3. Water supply services, to exclude small water
supply services such as bottling and refilling
1. The claim must arise from Er-Ee relationship; stations;
2. The claimant does not seek reinstatement; and 4. Air traffic control;
3. The aggregate money claim of each Ee does not exceed 5. Such other industries as may be recommended by
P5,000.00. the NTIPC; and
6. Banking institutions. (Azucena, 2016)

H. DOLE SECRETARY NOTE: The above enumerated industries are NOT exclusive
as other industries may be considered indispensable to the
national interest based on the appreciation and discretion
of the SOLE or as may be recommended by TIPC.
1. JURISDICTION
Appellate Jurisdiction
SOLE has jurisdiction over the following cases:
1. Appeal from and adverse decision of the POEA.
1. Assumption of jurisdiction over cases where labor (2003 POEA Rules and Regulations, Rule V, Part VII,
disputes are likely to cause a strike or lockout in an Sec. 1; Eastern Mediterranean Maritime Ltd. And
industry indispensable to national interes in the Agemar Manning Agency Inc., v. Surio et. al., G.R. No.
exercise of its Power of Assumption of Jurisdiction; 154213, Aug. 23, 2012)
(D.O. 40-G03, S 2010)
2. Appeal the order or results of a certification
2. Visitorial powers to over Ers; (Art. 128, LC) election on the ground that the Rules and
Regulations or parts thereof established by the SLE
3. Issue a writ of execution on a judgment; and (Art. 224, for the conduct of election have been violated. (LC,
LC) Art. 259)

4. Suspend the effects of the termination pending 3. A review of cancellation proceedings decided by
resolution of the dispute in the event of a prima facie the BLR in the exercise of its exclusive and original
finding by the appropriate official of the Department jurisdiction. (Abbott Laboratories Philippines, Inc.
of Labor and Employment before whom such dispute v. Abbott Laboratories Ees Union, G.R. No. 131374,
is pending that the termination may cause a serious Jan. 26, 2000)
labor dispute or is in implementation of a mass lay-off.
(Art. 277 (b), LC) 4. Appeals from the order/decision of the Med-
Arbiter involving certification election. (Sec. 25,
Requisites for Power of Assumption of Jurisdiction Rule VII, Book IX, Omnibus Rules)

1) Parties requested the SOLE to assume jurisdiction; 5. The decision of the Bureau Director in the exercise
or of his/her original jurisdiction involving
inter/intra union disputes may be appealed to the
2) After a conference called by the Office of the SOLE Office of the Secretary
on the propriety of its issuance, motu proprio or
upon a request or petition by either party to the
labor dispute. (Book V, IRR Rule XXII, sec. 15, IRR, as
amended by D.O. No. 40-H-13 s 2013).

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2. VISITORIAL AND ENFORCEMENT POWERS 3. Order stoppage of work or suspension of operation
when non-compliance with the law or implementing
rules and regulations poses grave and imminent
Visitorial Powers and Enforcement Powers
danger to health and safety of workers in the
workplace;
The DOLE issued D.O. No. 57-04, also called the Labor
Standards Enforcement Framework (LSEF).
4. Require Ers to keep and maintain such employment
records as may be necessary in aid to the visitorial and
The framework comprises three approaches:
enforcement powers; and
1. Self-assessment;
5. Conduct hearings within 24 hours to determine
2. Inspection; and
whether:
3. Advisory service.

a. An order for stoppage of work or suspension of

Visitorial power
operations shall be lifted or not; and
It constitutes:
b. Er shall pay the concerned Ees their salaries in
case the violation is attributable to his fault. (As
1. Access to Er’s records and premises at any time of the
amended by RA 7730; Guico v. Secretary, G.R. No.
day or night, whenever work is being undertaken;
131750, 16 Nov. 1998)
2. Right to copy from said records; and
Violations under Art. 128 of the LC
3. Right to question any Ee and investigate any fact,
1. To obstruct, impede, delay, or otherwise render
condition or matter which may be necessary to
ineffective the orders of the SOLE or his authorized
determine violations, or which may aid in the
representatives; and
enforcement of the LC and of any wage order, or rules
and regulation issued pursuant thereto.
2. Any government Ee found guilty of, or abuse of
authority, shall be subject to administrative
Instances where the visitorial power of the SOLE may be
investigation and summary dismissal from service.
exercised under the LC

Limitations to other courts

Power to:

In relation to enforcement orders issued under Art. 128 of

1. Inspect books of accounts and records of any person or
the LC, no inferior court or entity shall:
entity engaged in recruitment and placement, require
it to submit reports regularly on prescribed forms and
1. Issue temporary or permanent injunction or
act in violations of any provisions of the LC on
restraining order; or
recruitment and placement. (Art. 37, LC)
2. Assume jurisdiction over any case.
2. Have access to Er’s records and premises to determine
Instances when Enforcement Power may not be used
violations of any provisions of the LC on recruitment
and placement. (Art. 128, LC)
1. Case does not arise from the exercise of visitorial
power;
3. Conduct industrial safety inspections of
establishments. (Art. 165, LC)
2. When Er-Ee relationship ceased to exist at the time
of the inspection; and
4. Inquire into the financial activities of LLO and examine
their books of accounts upon the filing of the complaint
3. If Er contests the finding of the Labor Regulation
under oath and duly supported by the written consent
Officer and such contestable issue is not verifiable
of at least 20% of the total membership of the LO
in the normal course of inspection.
concerned.

The Supreme Court revisited the Bombo Radyo Ruling of

Enforcement power
2009 and modified it in March 2012 through an en banc
resolution. The Court now concedes that DOLE has the
Power to:
authority to determine the existence of an Er-Ee
relationship, “subject to judicial review, not review by
1. Issue compliance orders;
NLRC”.
2. Issue writs of execution for the enforcement of their
orders, except in cases where the Er contests the
findings of the labor officer and raise issues supported
by documentary proof which were not considered in
the course of inspection;

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3. POWER TO SUSPEND EFFECTS OF TERMINATION The Secretary was tasked to:

1. enhance existing measures within the agency, or

The SOLE may suspend the effects of the termination
initiate new ones, to prevent graft and corruption,
pending resolution of the dispute upon prima facie finding
and including such measures as management
by the appropriate official of the DOLE before whom such
audit, performance evaluations and inspections to
dispute is pending that the termination may cause serious
determine compliance with policies, standards,
labor dispute or is in implementation of a mass layoff. (Art.
and guidelines; and
277(b), LC)

2. to investigate, on its own or upon complaint,

NOTE: Art. 277(b) of LC is applicable on suspension of the
matters invoking disciplinary action against any
effects of termination if there is a showing that the
presidential appointees in the NLRC in accordance
termination may cause serious labor dispute within the
with existing law and regulations.
company while Art. 263(g) of LC on assumption of
jurisdiction is applicable in cases of strike in establishments
affecting national interest, not just the company. 4. REMEDIES

Reinstatement Pending Resolution of The Termination The remedy of an aggrieved party in a decision or resolution
Dispute of the SOLE is to timely file a motion for reconsideration as
a precondition for any further or subsequent remedy, and
Suspension of the effects of termination will necessarily then seasonably file a special civil action for certiorari
result in the immediate reinstatement of the terminated under Rule 65 of the 1997 Rules on Civil Procedure.
Ees. An order of reinstatement pending resolution of the (Pildtranco Service Enterprises, Inc. v. PHILTRANCO Worker’s
case may thus be issued by the SOLE pursuant to this power. Association, G.R. No. 180962, 26 Feb. 2014)

SOLE can assume jurisdiction over a labor dispute Powers of SOLE regarding voluntary arbitration

When there is a labor dispute causing or likely to cause a The SOLE may authorize any official to act as Voluntary
strike affecting national interest, the SOLE, on his own Arbitrator upon the written request and agreement of the
initiative or upon petition by any of the parties, may either parties to a labor dispute. (Art. 212(n), LC)
assume jurisdiction or certify the dispute to the NLRC for
compulsory arbitration. He shall also approve, upon recommendation of the NCMB
the guidelines in administering the Voluntary Arbitration
NOTE: Art. 263(g) of the LC is both an extraordinary and a Fund. (Art. 276(f), LC)
pre-emptive power to address an extraordinary situation (a
strike or lockout in an industry indispensable to the
national interest). The term “assume jurisdiction” connotes I. VOLUNTARY ARBITRATOR
the intent of the law to give the SOLE full authority to
resolve all matters within the dispute that gave rise to or
which arose out of the strike or lockout—it includes and
Jurisdiction of the Voluntary Arbitrators (VAs)
extends to all questions and controversies arising from or
related to the dispute, including cases over. (Bagong
Generally, the arbitrator is expected to decide only those
Pagkakaisa ng Manggagawa ng Triumph International v.
questions expressly delineated by the submission
Secretary of the DOLE, G.R. No. 167401, 05 July 2010)
agreement. Nevertheless, the arbitrator can assume that he
has the necessary power to make a final settlement since
Assumption of jurisdiction can be exercised without the
arbitration is the final resort for the adjudication of the
necessity of prior notice or hearing given to any of the
disputes. (Ludo and Luym Corp. v. Saornido, G.R. No. 140960,
party disputants
20 Jan. 2003)
The rationale for the SOLE’s assumption of jurisdiction can
Q: What would be nature of the power of the voluntary
justifiably rest on his own consideration of the exigency of
arbitrators in so far as the case submitted for voluntary
the situation in relation to the national interests. (Capitol
arbitration is concerned?
Medical Center v. Trajano, G.R. No. 155690, 30 June 2005)

A: The VA may decide on those issues submitted to him for

Delegated Administrative Supervision
voluntary arbitration. However, he may also resolve
matters that are related to the issues in order to avoid
SOLE has an administrative supervision over the NLRC, its
multiplicity of suits.
regional branches and all its personnel to:

Voluntary arbitrator
1. to further improve the rate of disposition of cases;
and
1. Any person accredited by the NCMB as such;
2. Any person named or designated in the CBA by the
2. to enhance existing measures for the prevention
parties to act as their VA;
of graft and corruption in the NLRC. (E.O. No. 204,
s. 2003)

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 LABOR LAW AND SOCIAL LEGISLATION
3. One chosen with or without the assistance of the Original and exclusive power over unresolved
NCMB, pursuant to a selection procedure agreed upon grievance appellate in nature
in the CBA;
Pursuant to Art. 273 and in relation to Art. 274, all
4. Any official that may be authorized by the SOLE to act grievances which are not settled within 7 calendar days
as VA upon the written request and agreement of the from the date of its submission for resolution to the last step
parties to a labor dispute. (Art. 262, LC) of the grievance machinery shall automatically be referred
to voluntary arbitration in the CBA. (Poquiz, 2018)
Original and exclusive jurisdiction of VAs
Jurisdiction over actual termination disputes and
1. All unresolved grievances arising from the: complaints for illegal dismissal

a. Implementation or interpretation of the CBA; The LA has jurisdiction over actual termination disputes
and and complaints for illegal dismissal filed by workers
b. Interpretation or enforcement of company pursuant to the union security clause and not the grievance
personnel policies machinery.

NOTE: Under Art. 217, it is clear that a LA has original Voluntary Arbitration as the “Master Procedure”
and exclusive jurisdiction over termination disputes.
However, under Art. 261, a VA has original and In labor-management relations voluntary arbitration is
exclusive jurisdiction over grievances arising from master procedure in the sense that all kinds of labor
the interpretation or enforcement of company disputes may be submitted to, settled, or resolved through
policies. As a general rule then, termination disputes voluntary arbitration by voluntary agreement of the parties.
should be brought before a LA, except when the
parties unmistakably express that they agree to As a master procedure, voluntary arbitration takes
submit the same to voluntary arbitration. (Negros precedence over other dispute settlement devices. When a
Metal Corporation v. Armelo Lamayo, G.R. No. 186557, labor arbiter, for instance, is presented with a case falling
25 Aug. 2010) As long as the termination is still an under his “original and exclusive” jurisdiction, the parties
unresolved grievance, meaning there is no actual may withdraw it from him, no matter at what stage it may
termination yet or serving of notice of dismissal, it be, if the parties mutually decide to bring the dispute
may still be subject to the jurisdiction of the VA. instead to voluntary arbitration.

The reference to a Grievance Machinery and Procedure

Voluntary Arbitrators for the adjustment or
resolution of grievances arising from the Arbitration is initiated by:
interpretation or implementation of their CBA and
those arising from the interpretation or enforcement 1. Submission Agreement – Where the parties define
of company personnel policies is mandatory. (Sanyo the disputes to be resolved;
Philippine Workers Union v. Canizares, G.R. No.
101619, 8 July 1992) 2. Demand/notice to arbitrate – Invoking collective
agreement arbitration clause
2. Wage distortion issues arising from the application of
any wage orders in organized establishments; Effect of the award of voluntary arbitrator

3. Those arising from interpretation and implementation The decision or award of the VA acting within the scope of
of productivity incentive programs under R.A. No. its authority shall determine the rights of the parties and
6971; their decisions shall have the same legal effects as judgment
of the courts. Such matters on fact and law are conclusive.
4. Violations of CBA provisions which are not gross in
character are no longer treated as ULP and shall be NOTE: Arbitral award is not subject to ratification of the
resolved as grievances under the CBA; and Ees.

5. Any other labor disputes upon agreement by the Both the Er and the bargaining representative of the Ees
parties including ULP and bargaining deadlock. (Art. are required to go through the grievance machinery
275, LC)
It is but logical, just, and equitable that whoever is aggrieved
NLRC and DOLE cannot entertain disputes, grievances, should initiate settlement of grievance through the
or matters under the exclusive and original jurisdiction grievance machinery. To impose compulsory procedure on
of the Voluntary Arbitrator Ers alone would be oppressive of capital.

They must immediately dispose and refer the same to the Nature of power of the voluntary arbitrator
grievance machinery or voluntary arbitration provided in
the CBA. Arbitrators by the nature of their functions act in a quasi-
judicial capacity. (BP 129, as amended by RA 9702) Where a

71 U N IV E R S I T Y O F S A N T O T O M A S
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 PRE-WEEK NOTES 2023
question of law is involved or there is abuse of discretion,
courts will not hesitate to pass upon review of their acts.

Decisions of voluntary arbitrators appealable

GR: Decisions of VA are final and executory after 10

calendar days from receipt of the copy of the award or
decision by the parties. (Art. 262-A, LC)

XPN: Decisions of VA may still be subject to judicial review.

Motion for Reconsideration

As a general rule, pursuant to Sec. 7, Rule XIX of D.O. No. 40-

03, decision, order, resolution, or award of the VA shall not
be subject of a motion for reconsideration. However, this
rule cannot stand in a petition for a writ of certiorari
because such petition inherently requires having filed a
motion for reconsideration. (Azucena, 2016)

Mode of appeal from VA to CA

GR: A decision or award of a voluntary arbitrator is

appealable to the CA via petition for review under Rule 43,
not Rule 65. (Samahan ng Mangagawa sa HYATT v.
Bacungan, G.R. No. 149050, 25 Mar. 2009)

XPNs: The Court cited situations when petition for

certiorari, despite availability of appeal, may be
entertained, such as:

1. When public welfare and advancement of public policy

dictates;

2. When the broader interest of justice so requires;

3. When the writs issued are null and void; or

4. When the questioned order amounts to an oppressive

exercise of judicial authority. (Azucena, 2016)

Period of Appeal is 10 days, not 15

In Coca-Cola Bottlers PH, Inc. Sales Force Union v. Coca-Cola

Bottlers PH., Inc, (G.R. No. 155651, 28 July 2005), the Court
declared that the decision of the VA had become final and
executory because it was appealed beyond the 10-day
reglementary period. Despite Rule 43 providing for a 15-
day period to appeal, the SC ruled that the VA’s decision
must be appealed before the CA within 10 calendar days
from receipt of decision. The 10-day period to appeal under
LC being a substantive right, this period cannot be
diminished, increased, or modified through the Rules of
Court because the Rules of Court are subordinate to the
statute.

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 LABOR LAW AND SOCIAL LEGISLATION

J. PRESCRIPTION OF ACTIONS

SUMMARY OF PRESCRIPTION OF ACTIONS

Rules Regarding to the Prescriptive Period Provided for Under the LC and Special Laws on Labor

SUBJECT PRESCRIPTIVE PERIOD

Criminal Offenses penalized under 3 years from the date of commission or discovery thereof (People v.
the LC and its IRR Duque, G.R. 100285, 13 Aug. 1992)

1 year from accrual of such ULP; otherwise forever barred (Art. 305,
ULP
LC)
Money Claims, including incremental proceeds GR: 3 years from the time the cause of action accrued; otherwise
arising from tuition fees under PD 451 (MLQU forever barred (Art. 306, LC)
Association v. MLQU, G.R. No. 82312, 19 Apr.
1989) XPN: Promissory Estoppel
All money claims accruing prior to the Within 1 year from the date of effectivity, in accordance with IRR;
effectivity of the LC otherwise, they shall forever be barred

4 years. It commences to run from the date of formal dismissal.

Illegal Dismissal
(Mendoza v. NLRC, G.R. No. 12248, 05 Mar. 1998)

4 years – Since an award of backwages is merely consequent to a

Claim for backwages declaration of illegal dismissal. (Arriola v. Pilipino Star Ngayon, Inc.
and Miguel G. Belmonte, G.R. No. 175689, 13 Aug. 2014)

Workmen’s Compensation claims accruing prior

They shall be filed not later than Mar. 31, 1975 before the appropriate
to the effectivity of the LC and between 01 Nov.
regional offices of the DOLE. (Art. 291, LC)
1974-31 Dec. 1974
Reinstatement 4 years (Callanta v. Carnation, G.R. No. 70615, 28 Oct. 1986)
Simple Illegal Recruitment 5 years (RA 8042)
Syndicated or Large-scale Illegal Recruitment 20 years (RA 8042)

After 3 years from the date of submission of the annual financial

report to the DOLE or from the date the same should have been
Union funds
submitted as required by law, whichever comes earlier. (Sec. 5, Book
VII, Rule II, IRR)

20 years from the time of delinquency is known or the assessment is

SSS Violations made or the benefit accrues as the case may be (RA 8282; Lo v. CA, G.R.
No. 128667, 17 Dec. 1999)

GR: 4 years
GSIS Benefits
XPN: Life and retirement benefits – Imprescriptible

Ee’s Compensation Claims 3 years from accrual of cause of action

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 APPENDIX
SUMMARY OF JURISDICTIONS

SOLE vs. RD vs. LA

VISITATION AND ENFORCEMENT

REGIONAL DIRECTOR LABOR ARBITER
POWER OF THE SOLE
LA exercises original and exclusive
jurisdiction on cases involving :

a. ULP;
Enforcement of labor legislation in b. Termination disputes;
general, such as: Under Art. 129 of the LC, the c. Wages;
Regional Director has jurisdiction d. Rates of pay;
a. Inspection of establishments; and over money claims not exceeding e. Hours of work;
P5,000 arising from Er-Ee
b. Issuance of orders to compel relationship where the claimant f. Other terms of employment, claims for
compliance with labor standards, does not seek reinstatement. damages arising from Er-Ee relationship,
wage orders and other labor laws. legality of strikes and lockouts; and

g. All other claims arising from Er-Ee

relationship involving an amount
exceeding Php 5,000.00.
LA decides case within 30 calendar days after
Proceeding is an offshoot of routine Initiated by sworn complaints filed
submission of the case by the parties for
inspections. by any interested party.
decision.
Appealable to Secretary of Labor. (In
case compliance order is issued by Appealable to NLRC Appealable to NLRC
Regional Office)

SEC vs. Regular Trial Courts

SEC REGULAR TRIAL COURTS

Original and Exclusive Jurisdiction
1. Intra-corporate controversies - the controversy
must pertain to any of the following relationships:

Between the corporation partnership or associations

and:

a. the public;

b. its stockholders, partners, members or officers;

c. the State as far as its franchise permit or license to
operation is concerned; and
No longer have jurisdiction over intra-corporate controversies
by virtue of PD 902-A d. among stockholders, partners or associates
amongst themselves. (Mailand v. Movilla, G.R. No.
118088, 23 Nov. 1995)

2. Money claims not arising from or not in connection

with employment; (Azucena, 2016)

3. Actions filed by 3rd parties being affected by the

strike of people who are not the Ees; and (Azucena,
2016)

4. Criminal acts done in a strike. (Azucena, 2016)

74 U N IV E R S I T Y O F S A N T O T O M A S
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 APPENDIX
Labor Arbiter vs. NLRC

LA NLRC
Original and Exclusive Jurisdiction
1. ULP cases;

2. Termination disputes or illegal dismissal

complaints;

3. If accompanied with a claim for reinstatement, those

cases that workers may file involving wages, rates of pay,
hours of work and other terms and conditions of
employment;

4. Claims for actual, moral, exemplary and other forms

of damages arising from the Er-Ee relations; 1. Certified labor disputes causing or likely to cause a
strike or lockout in an industry indispensable to
5. Cases arising from any violation of Art. 264 (now Art. national interest, certified to it by the SOLE or the
274) of this LC, including questions involving the legality President of the Philippines for compulsory arbitration;
of strikes and lockouts; and
2. Injunction in ordinary labor disputes to enjoin or
6. Except claims for Ees Compensation, Social Security, restrain any actual or threatened commission of any or
Medicare and maternity benefits, all other claims arising all prohibited or unlawful acts or to require the
from Er-Ee relations, including those of persons in performance of a particular act in any labor dispute
domestic or household service, involving an amount which, if not restrained or performed forthwith, may
exceeding P5,000.00 regardless of whether accompanied cause grave or irreparable damage to any party;
with a claim for reinstatement.
7. Money claims arising out of Er-Ee relationship or by 3. Injunction in strikes or lockouts under Art. 279 of the
virtue of any law and contract, involving a Filipino worker LC; and
for overseas deployment, including claims for actual,
moral, exemplary and other forms of damages as well as 4. Contempt cases.
employment termination of OFWs;
5. Verified petitions (Sec. 3, Rule XII, 2011 NLRC Rules of
8. Wage distortion disputes in unorganized Procedure)
establishments not voluntarily settled by the parties
pursuant to R.A. 6727 as reflected in Art. 124;

9. Enforcement of compromised agreements when

there is non-compliance by any of the parties pursuant to
Art. 233 of the LC, as amended;

10. Contested cases under the exception clause of Art.

128(b) of the LC; and

11. Other cases as may be provided by law.

Appellate Jurisdiction
1. Decisions, awards, or orders of the LA over:
a. Cases covered by Art. 224 (b);
b. Cases covered by Sec. 10 of Migrant
Worker’s Act; and
c. Cases decided under Art. 124 on wage
distortion in non-unionized establishment;

2. Denial of the claim of the third party claimant where

property was levied by the Sheriff of LA;
[no appellate jurisdiction]

3. Cases decided by the Regional Offices of DOLE in the

exercise of its adjudicatory function under Art. 129 of
the LC over monetary claims of workers amounting to
not more than P5,000 and not accompanied by claim
for reinstatement; and

4. Decision by the LA in Contempt contempt cases. (Art.

225(d), LC)

75 U N IV E R S I T Y O F S A N T O T O M A S
FACULTY OF CIVIL LAW
 APPENDIX
DOLE Regional Director vs. DOLE Secretary

DOLE REGIONAL DIRECTOR DOLE SECRETARY

Original and Exclusive Jurisdiction
1. Labor standards enforcement cases; (Art. 128, LC)

2. Small money claims cases arising from labor standards

violations in the amount not exceeding P5,000.00 and
not accompanied with a claim or reinstatement; (Art.
129, LC)

3. Occupational safety and health violation; (Rule 6, Rules

on the Disposition of Labor Standards Cases in the
Regional Offices)

4. Complaints against private recruitment and placement

agencies for local employment; (DOLE DO No. 141-14, s.
2014)
1. Disputes causing or likely to cause a strike or lockout in
5. Cases submitted for voluntary arbitration in their an industry indispensable to the national interest
capacity as Ex- Officio Voluntary Arbitrators (DO No. 83
- 07, s. 2007) 2. Visitorial powers to over Ers; (Art. 128, LC)

6. Applications for registration of independent labor 3. Issue a writ of execution on a judgment; and (Art. 224,
unions, chartered locals, workers' associations. (Sec. 1, LC)
Rule III, Book V, Omnibus Rules)
4. Suspend the effects of the termination pending
7. Requests for SEBA certification (Sec. 1, Rule VII, Book V, resolution of the dispute in the event of a prima facie
Omnibus Rules) finding by the appropriate official of the DOLE before
whom such dispute is pending that the termination
8. Petitions for certification election. may cause a serious labor dispute or is in
implementation of a mass lay-off. (Art. 277 (b), LC)
9. Complaints or petitions involving labor unions with
independent registrations, chartered locals, workers'
associations, its officers or members (Sec. 4, Rule XI,
Book V, Omnibus Rules)

10. Petitions for cancellation of registration of labor unions

with independent registration, chartered locals and
workers association (Sec. 4, Rule XI, Book V, Omnibus
Rules)

11. Petitions for deregistration of collective bargaining

agreements (Sec. 4, Rule XI, Book V, Omnibus Rules) and
12. Dispute over conduct of election of officers of labor
organizations (Sec. 2, Rule XII, Book V, Omnibus Rules)
Appellate Jurisdiction
1. Appeal from and adverse decision of the POEA. (2003
POEA Rules and Regulations, Rule V, Part VII, Sec. 1;
Eastern Mediterranean Maritime Ltd. And Agemar
Manning Agency Inc., v. Surio et. al., G.R. No. 154213, Aug.
23, 2012)

2. Appeal the order or results of a certification election on

the ground that the Rules and Regulations or parts
[no appellate jurisdiction] thereof established by the SLE for the conduct of
election have been violated. (LC, Art. 259)

3. A review of cancellation proceedings decided by the

BLR in the exercise of its exclusive and original
jurisdiction. (Abbott Laboratories Philippines, Inc. v.
Abbott Laboratories Ees Union, G.R. No. 131374, Jan. 26,
2000)

U N IV E R S I T Y O F S A N T O T O M A S 76
2023 GOLDEN NOTES
 APPENDIX
4. Appeals from the order/decision of the Med-Arbiter
involving certification election. (Sec. 25, Rule VII, Book
IX, Omnibus Rules)

5. The decision of the Bureau Director in the exercise of

his/her original jurisdiction involving inter/intra
union disputes may be appealed to the Office of the
Secretary

Voluntary Arbitrator vs. Bureau of Labor Relations

VA BLR
Original and Exclusive Jurisdiction

1. All inter-union and intra-union conflicts; (Art. 226,

LC)

2. All disputes, grievances or problems arising from or

1. Disputes concerning CBA implementation or affecting labor-management relations in all
personnel policy enforcement (Azucena, 2016) workplaces, except those arising from the
implementation or interpretation of collective
2. Disputes regarding ULPs and bargaining deadlocks; bargaining agreements; (Art. 226, LC)
(Azucena, 2016)
3. Complaints involving federations, national unions,
3. Money claims arising from a “interpretation and industry unions, its officers or member
implementation of a CBA, and those arising from the organizations; (Sec. 4, Rule XI, Book V, Omnibus Rules)
interpretation or enforcement of company
personnel policies. (Del Monte v. Saldivar, G.R. No. 4. Petition for the conduct of election of officers in the
158620, 11 Oct. 2006) and case of federations, national or industry unions and
trade union centers; (Sec. 2, Rule XII, Book V, Ominibus
4. Illegal dismissal cases that are submitted before it by Rules)
the parties upon agreement.
5. A request for examination of books of accounts of
federations or national unions and trade union
centers pursuant to Art. 274. (Sec. 3, Rule XIII, Book V,
Omnibus Rules)

Appellate Jurisdiction

Decisions/order of Med-arbiter or Regional Director relating

[no appellate jurisdiction] to inter-union and intra-union conflicts (Sec. 15, Rule XI, Book
V, Omnibus Rules)

77 U N IV E R S I T Y O F S A N T O T O M A S
FACULTY OF CIVIL LAW